The Supreme Court of India has dismissed a plea filed by former Indian Premier League (IPL) Chairman Lalit Modi, seeking to compel 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 of the Foreign Exchange Management Act (FEMA).
A bench of Justices P. S. Narasimha and R. Mahadevan ruled that Modi could pursue civil remedies available to him under the law. The case originates from a penalty levied on Modi by the ED concerning alleged financial irregularities during the 2009 IPL season, which was held in South Africa. The ED's investigation led to a total penalty of ₹121.56 crore imposed on several parties in 2018, including the BCCI, its then-chairman N. Srinivasan, and others. Modi's share of the penalty was ₹10.65 crore.
Modi had argued that the BCCI was obligated to indemnify him for actions taken in his official capacity as vice-president of the BCCI and chairman of the IPL governing council, a subcommittee of the BCCI, citing the board's bylaws. He claimed that the penalty arose from actions taken during his tenure with the cricket board.
However, the Bombay High Court had previously dismissed Modi's petition as "frivolous and wholly misconceived" and imposed a cost of ₹1 lakh on him. The High Court stated that the adjudicating authority under FEMA had imposed the penalty on Modi personally, and there was no legal basis to direct the BCCI to bear the amount. The court also referenced a 2005 Supreme Court judgment stating that the BCCI does not fall under the definition of a 'state' as defined under Article 12 of the Constitution. The High Court further noted that Modi had filed the petition in 2018 despite clear orders from the apex court. It added that there was no question of the discharge of any public function in the matter of alleged indemnification of Modi in the context of penalties imposed by the ED.
Before the Supreme Court, Modi's counsel argued that the matter could be subjected to writ jurisdiction under Article 226 of the Constitution of India. He also pointed out that in appellate proceedings under the Prevention of Money Laundering Act, 2002 (PMLA), others who were slapped with similar penalties by the ED, including former BCCI chief N. Srinivasan, had received interim relief. Modi's counsel submitted that if his appeal was not decided in his favor, he should be allowed to pursue a civil suit.
The Supreme Court disposed of Modi's appeal against the Bombay High Court's decision. The court clarified that Modi may pursue appropriate civil remedies if he chooses.