Lalit Modi facing probe in 2 high-profile cases

Lalit Modi facing probe in 2 high-profile cases

Lalit Modi facing probe in 2 high-profile cases

Former cricket administrator Lalit Modi, who is back in limelight with a controversy engulfing Sushma Swaraj and Vasundhare Raje, faces a series of investigations related to money laundering and forex law violations.

One of the prominent cases is related to contravention of forex laws in awarding cricketing media rights contract for Rs 425 crore in 2009 probed by Enforcement Directorate while import of an aircraft had attracted attention of Directorate of Revenue Intelligence. Modi or his lawyers could not be contacted for their side of the story.

Officials said the deal on cricketing media rights dates back to 2008 when the BCCI awarded media rights for 10 years to WSG on payment of $918 million. The WSG also entered into a deal with Multi Screen Media to make Sony the official broadcaster in the same year. However, a year later, the contract was replaced with a nine-year deal where Multi Screen Media paid $1.63 billion.

The ED started probing the case in 2009 to see whether there was violation of Foreign Exchange Management Act (FEMA) in the payment of Rs 425 crore facilitation fee by MSM Singapore to WSG Mauritius. Former BCCI president N Srinivasan had filed a case in Chennai earlier against WSG and Modi on charges of misappropriation. Modi also faced investigations in the transaction of Rs 90 crore with International Management Group, a UK company.

The DRI and Enforcement Directorate also investigated the purchase of an aircraft by Modi, which was reportedly linked to the WSG deal.

There were also allegations about FEMA violations in dealing with the money part of foreign players auctioned.

Modi also faced investigations for the foreign exchange transactions for organising the IPL-2 in South Africa.

 Though Modi puts the ball in Srinivasan’s court saying that the latter opened accounts in South Africa without informing RBI, his opponents said he cannot wash his hands off the deal.

There were also allegations that Modi had stake in Rajasthan Royals through benamis.
 

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