Archive · 22 Jul 2026
Tribunal Quashes Lalit Modi's Penalty in IPL 2009 FEMA Case
The Appellate Tribunal under the Smuggling and Foreign Exchange Manipulation Act (SAFEMA) has made a big decision about a case from 2009.
Lalit Modi, who was the chairman of the Indian Premier League (IPL) at that time, and other officials were fined for moving the IPL to South Africa.
The tribunal decided to cancel Modi's penalty and reduce the fines for the BCCI and other officials.
The case was about money sent to South Africa for the IPL, which the government said was not allowed.
Modi said he did nothing wrong and acted in the best interests of cricket.
The tribunal agreed that the money sent was for current expenses, not investments, and that the decision to move the IPL was because of India's elections at that time.
The Appellate Tribunal quashed the penalty imposed on Lalit Modi in the IPL 2009 FEMA case.
The tribunal reduced the penalty on the BCCI from ₹4 crore to ₹1 crore.
Penalties for N. Srinivasan and M.P. Pandove were also reduced in one matter but remained the same in another.
The case involved alleged violations of the Foreign Exchange Management Act over remittances for hosting IPL-2 in South Africa.
Modi argued that the money sent was for current account transactions and that he acted in good faith.
- Who
- Lalit Modi, N. Srinivasan, M.P. Pandove, BCCI
- What
- Quashing and reduction of penalties in the IPL 2009 FEMA case
- When
- July 16
- Where
- India
- Why
- Alleged violations of the Foreign Exchange Management Act, 1999, over remittances made for hosting IPL-2 in South Africa
Lalit Modi's Defense
Enforcement Directorate's Case
Nature of Transactions
Lalit Modi's Defense
The principal foreign remittances were current account transactions, not capital account transactions.
Enforcement Directorate's Case
The transfers were capital account transactions made without prior approval of the RBI.
Responsibility for Compliance
Lalit Modi's Defense
Modi was neither responsible for the BCCI’s statutory FEMA compliance nor vested with the financial authority alleged by the ED.
Enforcement Directorate's Case
Modi was responsible for the BCCI’s statutory FEMA compliance and had the financial authority alleged by the ED.
- Date of Verdict
- July 16
- Penalty on Lalit Modi
- Quashed
- Penalty on BCCI
- Reduced from ₹4 crore to ₹1 crore
- Penalty on N. Srinivasan
- Reduced from ₹1 crore to ₹10 lakh in one matter, but ₹50 lakh in another
- Penalty on M.P. Pandove
- Reduced from ₹50 lakh to ₹5 lakh in one matter, but ₹50 lakh in another
- Total Penalty Imposed Initially
- INR 10.65 crore
- Amount Remitted
- USD 49,862,799.42 (approximately ₹243.45 crore at the time)
