Tribunal quashes ED penalties against former IPL chief Lalit Modi in 2009 FEMA case

Lalit Modi, the former IPL chairman, secured major legal relief after an appellate tribunal overturned the Enforcement Directorate’s penalty against him in connection with the 2009 IPL South Africa case. The judgment arrived on July 16 from the Appellate Tribunal operating under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act (SAFEMA). The 105-page ruling from the tribunal’s division bench, led by Chairman Justice Munishwar Nath Bhandari and Member Rajesh Malhotra, stated that Modi was not in-charge of the affairs and otherwise he has been framed in the case without any material showing his responsibility.

The case traces back to 2009 when the IPL season moved to South Africa after security concerns linked to India’s general elections made holding it domestically problematic. The ED had alleged that the BCCI transferred foreign exchange worth $49.86 million to an overseas entity without prior approval from the Reserve Bank of India, claiming this breached the Foreign Exchange Management Act (FEMA). However, the tribunal found no material evidence to establish that Modi held responsibility for the alleged FEMA violations.

What did Lalit Modi say about the tribunal verdict?

Modi expressed jubilation following the decision. Through a formal statement issued by his lawyer Mehmood Abdi, Modi elaborated on his position.

“I’m really happy that the tribunal has ruled in my favour. I was only concerned with the well-being of the IPL and nothing and nothing at all. That is the most dear to me. Now that chapter is behind me, I’m going to move on in my life, and I’m looking forward to coming back to India”, as quoted by Business Today.

“For over sixteen years I have consistently maintained one simple position: I acted in good faith, in the best interests of Indian cricket and the IPL, and committed no personal wrongdoing,” Modi stated.

The judgment, Modi added through his counsel, reaffirmed the importance of proper legal procedure and objective examination of evidence.

When does Lalit Modi plan to return to India?

Modi indicated his return timeline would depend on family circumstances and his immediate plans. He expressed eagerness to come back to India, with an anticipated return by the close of the year or early in the next. Modi departed India in 2010 while facing investigations from the ED, the Income Tax Department, and the BCCI. The tribunal’s decision marks the conclusion of a prolonged legal confrontation spanning more than 16 years following his departure in 2010.