The Enforcement Directorate [ED] has slapped Board of Control for Cricket in India [BCCI], Indian Premier League [IPL] with show cause notice for allegedly violating Forex laws. ED has served notice accusing BCCI of manipulating the contract of distribution rights of IPL and creating an asset worth Rs 425 crore outside India under the guise of a facilitation fee.
The notice was issued to BCCI, Multi Screen Media [Singapore], a division of Sony Entertainment and World Sports Group [Mauritius]. BCCI initially signed a deal in the year 2008 with WSG for 10 years Media rights of IPL for USD 918 millions. The contract was replaced a year later with nine year agreement when WSG had an understanding with MSM for USD 1.63 billion. The ED looked at this deal and under the under the Foreign Exchange Management Act [FEMA], it claimed that the payment made by MSM to WSG is illegal.
The ED served notice to individuals who have held vital roles in BCCI and IPL then and also to the top officials of MSM WSG. The recipients have 45 days to appeal to the notice or else are entitled to pay the amount mentioned in the notice.
- TVR
