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May 25, 2013
Behind the billion-dollar deals and million-dollar salaries, the IPL has been the subject of much litigation, apart from frequent investigation by federal authorities in India. Here are some of the most serious documented instances of litigation or investigation involving the BCCI and/or its officials.
April 2010: The BCCI suspends Lalit Modi following 'alleged acts of individual misdemeanours', including the the bidding process for IPL franchises, mid-over ad breaks, and the sale of theatrical rights. The issue of an $80-million facilitation fee agreement between Lalit Modi and Multi Screen Media also influences the BCCI's decision.
April 2010: Former BCCI president AC Muthiah files a petition in the Supreme Court of India challenging the BCCI's rules - tweaked in 2008 - that allow N Srinivasan to hold a post in the board and own an IPL team.
September 2010: Modi files a petition in the Supreme Court seeking to remove IPL commissioner Chirayu Amin and BCCI vice-president Arun Jaitley from the an independent inquiry into his ouster from the BCCI. The petition is dismissed a year later.
October 2010: Rajasthan Royals and Kings XI Punjab sue BCCI for unfair termination of contract. The BCCI alleges that both franchises have violated their franchise agreements, while the franchises deny the allegations. The Bombay High Court directs the cases to arbitration. An interim order allows Royals and Kings XI to participate in the 2011 auction, subject to certain conditions, such as retaining its shareholder pattern, fulfilling pending player payments and paying the BCCI guarantee money in case the final judgement goes against them. In 2012, the BCCI finally settles all pending legal issues with Kings XI . There is no definitive outcome in their issues against Rajasthan Royals.
January 2011: Senior members of the BCCI appear before a Parliamentary Standing Committee on Finance on alleged foreign exchange violations during IPL 2009, held in South Africa.
April 2011: A two-judge bench of the Supreme Court delivers a split verdict on Muthiah's petition challenging Srinivasan's right to hold a position in the board while also holding a stake in an IPL franchise. At this point, Srinivasan is the BCCI's secretary. The split verdict means the petition is to be referred to the Chief Justice for allocating it to a larger bench.
July 2011: India's Enforcement Directorate issues 19 showcause notices to the BCCI and Lalit Modi after conducting year-long investigations under the Foreign Exchange Management Act (FEMA). The Directorate probes the alleged transfer of funds to domestic and offshore locations, and the violations total Rs 1077.43 crores (approx. US$ 207.52 million).
September 2011: The Supreme Court clears N Srinivasan's election as BCCI president, but the decision is subject to the outcome of Muthiah's petition against his election. The court rules that their decision to stop Srinivasan from being president could affect the outcome of a pending trial. However, there has been no final settlement on the matter.
February 2012: Rendezvous Sports World Pvt Ltd, owners of the annulled Kochi Tuskers franchise, approach court to save the franchise after BCCI terminates the franchise. The court rejects their plea and the franchise is terminated.
August 2012: Enforcement Directorate issues fresh showcase notice to BCCI for committing FEMA contraventions in acceptance of performance deposits amounting to Rs 60 crores (approx. US$ 10.8 million) for awarding of contracts for the conduct of Indian Premier League (IPL).
September 2012: The BCCI terminates Deccan Chargers franchise. After a legal battle, the Supreme Court of India upholds Chargers' termination.
February 2013: Competition Commission of India finds the BCCI guilty of indulging in anti-competitive practices relating to the grant of IPL franchise, sponsorship and media rights, and slaps it with a penalty of Rs. 52.24 crore (approx. US$10 million). The Commission observed that BCCI had abused its dominant position and ordered it to 'cease and desist' from denying potential competitors market - the ICL is mentioned here - access in the future.
February 2013: Rajasthan Royals are fined Rs 100 crore (approx. US$18.8 million) by Enforcement Directorate for FEMA violations.
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