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Bowled Out? Modi’s Gamble Fails In SC

In a major setback for former IPL Commissioner Lalit Modi, the Supreme Court has dismissed his plea seeking to make the BCCI pay ₹10.65 crore penalty imposed on him by the Enforcement Directorate under Foreign Exchange Management Act(FEMA).

The High Court observed that "In matters of alleged indemnification of the petitioner in the context of penalties imposed upon the petitioner by the ED, there is no question of discharge of any public function, and therefore, for this purpose, no writ could be issued to the BCCI."

 

A bench of Justices P.S.Narasimha and R.Mahadevan refused to interfere with Bombay High Court’s decision,which had earlier dismissed Modi’s writ petition and termed it “frivolous and misconceived.”The High Court had also imposed a cost of ₹1 Lakh on him,to be paid to Tata Memorial Hospital.

 

“One fact my lord, but I must point out in all fairness that when I filed an appeal before the appellate authority of PMLA, not only was I am a party, but Mr. Srinivasan and the other officers were also a party. There the interim order protects these people on the same footing saying that BCCI should deposit 10 crores.”, Modi's counsel contended.

 

Modi had argued that the BCCI was bound to indemnify him under Rule 34 of the BCCI constitution, but the Court held that such internal rules do not make BCCI a “State” under the Constitution and hence, no writ can lie against it.

 

"In Zee Telefilms Ltd. & Anr. Vs. Union of India & Ors. 2005 4 SCC 649, the Hon'ble Supreme Court has held that the BCCI does not answer the definition of 'State' within the meaning assigned to this term under Article 12 of the Constitution of India. Therefore, this petition and the reliefs sought for it are not maintainable.", the High Court added.

 

The Apex Court clarified that Modi was free to pursue civil remedies if he wished to claim indemnity, but refused to entertain the petition under writ jurisdiction.

“if a petition under Article 226 is not made available, the appellant should be entitled to avail civil remedies. It is true that the appellant will be entitled to avail such civil remedies as may be available to him…”, the court said.

 

With this, Lalit Modi’s attempt to shift the penalty burden to the BCCI has officially failed.

 

Case Title:

LALIT KUMAR MODI versus BOARD OF CONTROL FOR CRICKET IN INDIA AND ORS.,Diary No.14199-2025

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Manasvi Pandey

Legal Intern, 3rd Year student at ICFAI, Dehradun

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