SAFEMA tribunal sets aside FEMA penalties against Lalit Modi in IPL 2009 case

New Delhi: Former Indian Premier League (IPL) chairman Lalit Modi on Monday claimed a major legal victory after the Appellate Tribunal under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act (SAFEMA) set aside penalties imposed on him in connection with the 2009 IPL's relocation to South Africa.

In a statement issued after the tribunal's July 16 judgment, Modi said the ruling rejected the Enforcement Directorate's central allegation that foreign remittances related to the staging of the 2009 IPL in South Africa were capital account transactions in violation of the Foreign Exchange Management Act (FEMA).

According to Modi, the tribunal held that the remittances were current account transactions, thereby overturning the basis of the Enforcement Directorate's case. He further said the tribunal found that he was neither responsible for the BCCI's statutory FEMA compliance nor vested with the financial authority alleged by the agency, and consequently set aside the penalties imposed on him.

Calling the verdict the culmination of more than 16 years of litigation, Modi said it marked the conclusion of the most significant legal proceedings arising from the 2009 IPL in South Africa.

"For over sixteen years I have consistently maintained one simple position: I acted in good faith, in the best interests of Indian cricket and the IPL, and committed no personal wrongdoing," Modi said in the statement.

He reiterated that the decision to shift the 2009 IPL to South Africa was taken because of the general elections in India, which made it impossible to stage the tournament in the country. He said the move ensured the IPL's continuity and helped it grow into one of the world's most valuable sporting properties.

Modi also thanked his legal team, family and supporters for standing by him during the prolonged legal battle. Describing the verdict as more than a personal vindication, he said it reaffirmed the importance of due process and the principle that allegations must ultimately be tested against evidence and law.

The former IPL chief added that he now intends to focus on opportunities in global sport, business and philanthropy, while putting the long-running legal chapter behind him.

According to Modi, the tribunal held that the penalty imposed on him was "wholly erroneous" and therefore liable to be set aside.

The Enforcement Directorate had not issued an immediate response to Modi's statement at the time of filing this report.

Tags : Lalit Modi, Cricket, IPL, FEMA, Foreign Exchange