Corruption in IPL May 25, 2013

The Indian League of Litigation

ESPNcricinfo staff

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.

Comments have now been closed for this article

  • Viv-Viru on May 25, 2013, 17:48 GMT

    When people resolve their inevitable conflicts in a court of law instead of taking law in to their own hands that is a good thing. Capitalism needs effective judiciary as much as democracy needs. These are the drivers of growth and prosperity for all. So India needs to work on improving the speed and usefulness of judiciary. It is also great for jobs growth in this sector.

  • on May 25, 2013, 16:44 GMT

    Lack of effective governance, due diligence and accountability covered up the hype and hoopla created by the media frenzy and vested interests to have a slice of the IPL cake has resulted in this messy state of affairs-the Governing council and the IPL commissioner have to be taken to task and need to explain their lack of control over events as the can of worms spill out.- as someone once said "evil flourishes when the good keep silent". In the process genuine fans and the great game have been short-changed.Now the dirt has hit the ceiling as the snowball of misdeeds cascades downhill destroying the cover-ups.

  • on May 25, 2013, 16:26 GMT

    With due respect to the legal process I strongly feel that the petition by Muthaiah, former president of BCCI is a very valid. The developments that followed and the domination of one franchise in the overall selection of national team is too conspicuous to ignore. I hope this issue of conflict of interests is settled in a manner that would protect the interests of the game.

  • Viv-Viru on May 25, 2013, 17:48 GMT

    When people resolve their inevitable conflicts in a court of law instead of taking law in to their own hands that is a good thing. Capitalism needs effective judiciary as much as democracy needs. These are the drivers of growth and prosperity for all. So India needs to work on improving the speed and usefulness of judiciary. It is also great for jobs growth in this sector.

  • on May 25, 2013, 16:44 GMT

    Lack of effective governance, due diligence and accountability covered up the hype and hoopla created by the media frenzy and vested interests to have a slice of the IPL cake has resulted in this messy state of affairs-the Governing council and the IPL commissioner have to be taken to task and need to explain their lack of control over events as the can of worms spill out.- as someone once said "evil flourishes when the good keep silent". In the process genuine fans and the great game have been short-changed.Now the dirt has hit the ceiling as the snowball of misdeeds cascades downhill destroying the cover-ups.

  • on May 25, 2013, 16:26 GMT

    With due respect to the legal process I strongly feel that the petition by Muthaiah, former president of BCCI is a very valid. The developments that followed and the domination of one franchise in the overall selection of national team is too conspicuous to ignore. I hope this issue of conflict of interests is settled in a manner that would protect the interests of the game.

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  • on May 25, 2013, 16:26 GMT

    With due respect to the legal process I strongly feel that the petition by Muthaiah, former president of BCCI is a very valid. The developments that followed and the domination of one franchise in the overall selection of national team is too conspicuous to ignore. I hope this issue of conflict of interests is settled in a manner that would protect the interests of the game.

  • on May 25, 2013, 16:44 GMT

    Lack of effective governance, due diligence and accountability covered up the hype and hoopla created by the media frenzy and vested interests to have a slice of the IPL cake has resulted in this messy state of affairs-the Governing council and the IPL commissioner have to be taken to task and need to explain their lack of control over events as the can of worms spill out.- as someone once said "evil flourishes when the good keep silent". In the process genuine fans and the great game have been short-changed.Now the dirt has hit the ceiling as the snowball of misdeeds cascades downhill destroying the cover-ups.

  • Viv-Viru on May 25, 2013, 17:48 GMT

    When people resolve their inevitable conflicts in a court of law instead of taking law in to their own hands that is a good thing. Capitalism needs effective judiciary as much as democracy needs. These are the drivers of growth and prosperity for all. So India needs to work on improving the speed and usefulness of judiciary. It is also great for jobs growth in this sector.