December 21, 2024: In a setback to Lalit Modi, the founder of the Indian Premier League (IPL), the Bombay High Court has imposed a fine of Rs 1 lakh on him for filing a frivolous petition. Modi had sought the court’s intervention to direct the Board of Control for Cricket in India (BCCI) to pay a Rs 10.65 crore penalty levied on him by the Enforcement Directorate (ED) for alleged violations under the Foreign Exchange Management Act (FEMA).
The court, consisting of Justices MS Sonak and Jitendra Jain, dismissed Modi’s petition, calling it ‘wholly misconceived’. Modi had sought an interim order requiring the BCCI to cover the penalty, which was imposed in May 2018. His plea argued that, as the Vice President of the BCCI and Chairman of the IPL Governing Body during that time, the Board was obligated to indemnify him, according to the cricketing body’s by-laws.
However, the bench pointed to a 2005 Supreme Court judgment that clearly stated the BCCI does not qualify as a ‘state’ under constitutional provisions, making it ineligible for the kind of indemnification Modi sought. Despite this clear precedent, Modi had filed the petition in 2018.
The judges emphasized that the request for indemnification in relation to a penalty imposed by the ED was not a matter for the BCCI, as the cricket board was not involved in any public function related to the penalty. The court stated, “No writ could be issued to the BCCI for this purpose,” and affirmed that no such relief could be granted.
As a result of the court’s ruling, the petition was dismissed with costs. Modi has been ordered to pay Rs 1 lakh as a fine to the Tata Memorial Hospital by January 16, 2025.