Intelligence agencies are approaching the Reserve Bank of India and the finance ministry to get details on banks' financial support like loans and guarantees.
This issue has become crucial as some investors in the franchisees are overseas firms registered in tax havens and there is little information about their sources of funding.
With allegations of laundered money being used by some of the IPL franchisees, the Intelligence Bureau is examining whether any bank in India issued any guarantees and money to IPL franchisees and whether the Know Your Customer guidelines were followed diligently.
If required, the ambit of the examination could expand to include overseas offices of banks. Sources said there are limitations on agencies seeking information directly from banks.
The banking regulator is better equipped to gather information and the finance ministry can facilitate interaction with public sector banks. Sources said some banks have already been approached though there is no formal communication.
PM reminisces days as boss of India's reserves
Congress will return to power, says IB report
IPL is the most lucrative tournament for Kiwis
Rajiv Shukla meets PM over IPL row
IPL, Modi and Power Games: What media says