ED issues show cause notice to BCCI over alleged Fema violations

MUMBAI: The Enforcement Directorate (ED) today issued a show cause notice to the BCCI for alleged foreign exchange violations regarding the Indian Premier League (IPL)

The BCCI had accepted deposits of Rs 600 million for conducting the second season which had been shifted to South Africa. There was a performance deposit of Rs 200 million from Emerging Media Sporting Holdings Ltd, UK (bidding for IPL franchise Rajasthan Royals) and Rs 400 million from MSM Satellite (Singapore) Pte Ltd (bidding for TV broadcast contract).

The notices have been issued to former IPL commissioner Lalit Modi, BCCI president N Srinivasan, former BCCI secretary Niranjan Shah and HDFC Bank.

Reports add that in addition to imposition of penalties, the show cause notice also proposes confiscation of these deposits of Rs 600 million.

Rajasthan Royals CEO Raghu Iyer said, " This money was a performance deposit given before we won the franchise. We sent it from abroad as there was no company formed here. All parties who bid for a franchise had to deposit Rs. 200 million. The Enforcement Directorate had questioned us on this issue last year and we replied to them."