The Supreme Court on Monday dismissed a plea by former Indian Premier League (IPL) chairman Lalit Modi, who had sought a direction to the Board of Control for Cricket in India (BCCI) to pay a penalty of ₹10.65 crore imposed on him by the Enforcement Directorate (ED) for violations under the Foreign Exchange Management Act (FEMA).
A bench comprising Justices P.S. Narasimha and R. Mahadevan refused to entertain the petition, stating that Modi is free to pursue any civil remedies available to him under the law.
The top court was hearing an appeal against the Bombay High Court’s December 19, 2023, order which had dismissed Modi’s writ petition and imposed a cost of ₹1 lakh for filing a “frivolous and wholly misconceived” plea. The high court had held that since the ED penalty was imposed on Modi personally by the adjudication authority under FEMA, the BCCI could not be directed through a writ petition to indemnify the amount.
Modi, in his petition, had contended that the BCCI was bound to indemnify him under its bylaws, as he was serving as BCCI Vice President and Chairman of the IPL governing body at the time of the alleged violations.
However, the Bombay High Court had cited a 2005 Supreme Court ruling which held that BCCI is not a ‘State’ under Article 12 of the Constitution, and thus not amenable to writ jurisdiction for private contractual matters.
Rejecting the argument of indemnity, the high court had said, “There is no question of discharge of any public function in this matter,” and hence no writ could be issued. The court had also directed Modi to deposit ₹1 lakh with Tata Memorial Hospital within four weeks.
With the Supreme Court now affirming the high court’s findings, Modi must seek civil recourse if he wishes to press his claim for indemnification.
