|Photos||Video & Audio||Blogs||Statistics||Archive||Shop||Mobile|
February 4, 2013
The Enforcement Directorate of India's finance ministry has levied a penalty of approximately Rs 100 crore ($18.77 million) against IPL franchise Rajasthan Royals for violating India's foreign exchange laws. According to the order, the Royals' owners have a 45-day deadline to pay the fine but can appeal the order.
The ED issued three separate notices to the various owners, PTI reported, after two years of investigations under the Foreign Exchange Management Act (FEMA). Jaipur IPL Cricket Private Limited (JIPL) was hit with a Rs 50 crore penalty, EM Sporting Holding, Mauritius with Rs 34 crore and a notice of Rs 14.5 crore against Ms ND Investments, United Kingdom.
The ED has been investigating financial and foreign exchange irregularities against all franchises and this is the first big order against a team. The order said the ED found that foreign investment in JIPL was made in "flagrant contravention of FEMA" and the investment made in this regard was made "much prior to the incorporation of JIPL".
A statement issued by Royals said acknowledged receiving an order in respect of alleged breaches of FEMA. "We are discussing the contents of the order with our lawyers and intend to launch a full appeal against the order," it said.
The penalty was issued after investigations pointed out that funds in the firm had been remitted in an irregular manner and shares were allegedly issued in violation of forex rules stipulated and framed by the Reserve Bank of India, the country's topmost bank.
The ED issued the first penalty order against Rajasthan Royals in mid-2011 and it recently moved the FEMA Adjudicating Authority in Delhi to vet its investigation in this case and issue final orders. The agency, during its probe, relied on bank documents and statements made by the directors and investors of Rajasthan Royals.
The ED has issued almost 24 show cause notices, amounting Rs 2000 crore, under FEMA against various IPL franchises and the BCCI.
© ESPN Sports Media Ltd.
|Comments have now been closed for this article
The BCCI set up a three-man committee to tackle the problem of chucking at age-group and domestic cricket, and it has produced significant results in five years
The board's latest standoff with its players has had embarrassing consequences internationally, so any resolution now needs to be approached thoughtfully
What Australia have not done since returning a fractured unit from India is head back to Asia to play an Asian team. Two of their major weaknesses - handling spin and reverse swing - will be tested in the UAE by Pakistan
The WICB statement should cool down emotions and allow all parties involved to take the next step forward
The gap between the haves and the have-nots is growing wider, and the disenchantment is forcing a devaluation of Test cricket among weaker teams
Players demanding that home pitches should be prepared to favour them don't realise it's a retaliatory business
ESPNcricinfo runs the rule over the preparation of all 16 Australia players ahead of the first Test, which starts in Dubai on Wednesday