IPL founder Lalit Modi is preparing to return to India after 16 years. On 16 July, an appellate tribunal delivered its verdict in the FEMA case related to the 2009 IPL season held in South Africa, setting aside the Enforcement Directorate’s (ED) penalty against him.
Following the ruling, Modi said the decision had cleared the way for his return to India. He said he could come back by the end of this year or early next year. Modi also revealed that his daughter is expecting a baby in October, after which he plans to return to India.
Case related to transfer of funds from India to South Africa
The case pertains to the 2009 IPL season, which was shifted from India to South Africa due to security concerns during the Lok Sabha elections. For organising the tournament, the BCCI transferred around ₹243.45 crore to South Africa.
Later, the ED alleged that the money was sent abroad without prior approval from the Reserve Bank of India (RBI), violating the Foreign Exchange Management Act (FEMA). The agency issued a notice in 2011 and, in 2018, imposed penalties on Lalit Modi and some former BCCI officials.
Tribunal says Modi was not personally liable
In its order, the appellate tribunal held that the money transferred to South Africa was a current account transaction, not a capital account transaction. Therefore, prior RBI approval was not required.
The tribunal also ruled that Lalit Modi was not personally responsible for ensuring BCCI’s compliance with FEMA regulations. On this basis, it set aside most of the ED’s findings and quashed the penalty imposed on him.
