The Enforcement Directorate on Monday issued a notice to the Board of Control for Cricket in India (BCCI) for alleged contravention of foreign exchange rules during IPL 2 held in 2009.
The Enforcement Directorate stated that the BCCI had failed to repatriate the revenues earned in South Africa and issued show-cause notices to BCCI officials Shashank Manohar and N. Srinivasan. It also issued notices to the then IPL Commissioner Lalit Modi.
The venue of the tournament was shifted to South Africa after the government expressed its inability to provide adequate security since it was coinciding with the Lok Sabha elections. The BCCI hosted the tournament after an agreement with Cricket South Africa (CSA).
During the tournament, the BCCI opened a foreign bank account and transferred Rs 250 crores to this account through CSA. This, the ED maintains, bypassed FEMA provisions as well as Reserve Bank of India (RBI) norms on the matter. According to the ED, the BCCI spent money from this account for conducting IPL 2.
According to ED sources, the notices that have been issued are regarding money in the range of 16,500 crore being transferred from India without following the FEMA norms.
In July, the Enforcement Directorate had issued notices to the BCCI and Mr Modi in connection with an alleged dubious transaction of Rs. 90 crore with International Management Group (IMG), a UK-based event management company. IMG handled logistics in the first four seasons of IPL.
The agency is also investigating the alleged FEMA violations against various IPL franchises and foreign exchange and remittance related offences and connected issues concerning both the IPL and the BCCI.
Mr Modi was sacked last year after allegations of irregularities in the selection of franchises for the tournament.
During the course of its investigations, the ED has also issued notices to senior BCCI office-bearers, members of the IPL governing body and owners of franchises.
Former BCCI president Shashank Manohar, who was head of the cricket body from 2008 till this year, had appeared before the directorate in connection with the investigations on August 10.
On November 6, ED officials had recorded the statement of Bollywood superstar and Kolkata Knight Riders co-owner Shah Rukh Khan.
Current BCCI president N. Srinivasan has also been issued show-cause notices by the ED. Former cricketer Ravi Shastri, who was on the IPL governing council headed by Lalit Modi, is among those who have already been questioned in this connection.