IPL 2009 payments legitimate: BCCI

Sanjay Patel (left) said that the reported violation of Rs 1600 crores mentioned in a media report is misleading © AFP (File Photo)

New Delhi: Sep 21, 2013

The Board of Control for Cricket in India (BCCI) on Saturday refuted allegations that it violated India’s foreign exchange regulations while conducting the 2009 Indian Premier League (IPL) in South Africa, insisting that all the payments were “bona fide and legitimate”.

Reacting to a media report which stated that the BCCI had issued notice by the Enforcement Directorate for contravening FEMA by remitting Rs 283 crore to Cricket South Africa (CSA) and paying IMG Rs 88.48 crore for services in the conduct of the IPL, the board stated the “violation of Rs 1600 crores mentioned in the report is misleading”.

“The BCCI wishes to clarify that these show cause notices were issued in July 2011 and October 2011 and that the BCCI has given detailed replies refuting the charges,” BCCI Secretary Sanjay Patel said in a statement.

“The BCCI also wishes to clarify that the reported violation of Rs 1600 crores mentioned in the report is misleading. The total foreign exchange payments made to CSA and IMG covered by these notices were only Rs 283 crores but adding up charges of contraventions of multiple provisions of FEMA has resulted in this figure,” he added.

“The BCCI reiterates that these payments were bona fide and legitimate.”

The financial transactions during that edition of the IPL had kicked up in storm in South Africa as well and led to the stepping down of CSA CEO Gerald Majola for sanctioning millions in bonus for himself and some other CSA officials.

Justifying the payments made to IMG, Patel said the company had been hired to provide “expert assistance” in conducting the IPL as per the international standards.

“IPL 2 was shifted to South Africa in 2009, since the Government of India was unable to make the necessary security arrangements since its forces were deployed for election duty,” he recalled.