Lalit Modi's plea against BCCI backfires

HC imposes cost of Rs 1 lakh on Lalit Modi for plea seeking BCCI to pay ED penalty

The Bombay High Court has imposed a cost of Rs 1 lakh on former cricket administrator Lalit Modi while dismissing his petition seeking an order to BCCI to pay penalty of Rs 10.65 crore imposed on him by ED for violating Foreign Exchange Management Act (FEMA).

A division bench of Justices M S Sonak and Jitendra Jain, in its order of Thursday, said the petition was "frivolous and wholly misconceived" as the adjudication authority under the FEMA has imposed the penalty on Modi.

Modi in his plea said he was appointed as vice president of Board of Control for Cricket in India, during which period he was also chairman of Indian Premier League governing body, a subcommittee of the BCCI.

The plea claimed the BCCI is supposed to indemnify him as per bylaws.

The HC bench, however, referred to a Supreme Court judgment of 2005 which said the BCCI does not fall under the definition of 'State' as defined under Article 12 of the Constitution of India.

Despite clear orders from the apex court, Modi has filed this petition in 2018, the HC bench noted.

"In matters of alleged indemnification of the petitioner (Modi) in the context of penalties imposed upon the petitioner by the ED, there is no question of discharge of any public function, and therefore, for this purpose, no writ could be issued to the BCCI," HC said.

"In any event, the reliefs are wholly misconceived. This petition is frivolous, and accordingly, we dismiss this petition," the court said and directed Modi to pay a sum of Rs 1 lakh to Tata Memorial Hospital within four weeks.