FEMA Tribunal Gives Clean Chit to Lalit Modi

Former IPL Chairman Lalit Modi has secured a major legal victory after the FEMA Appellate Tribunal set aside the ₹10.65 crore penalty imposed on him in connection with the 2009 Indian Premier League held in South Africa. The tribunal ruled that there was no sufficient evidence to establish FEMA violations and observed that Modi had played a crucial role in successfully conducting the tournament overseas during India's 2009 general elections, when security concerns prevented the event from being held in the country. Following the verdict, Modi celebrated by sharing a dance video on social media, which has since gone viral.

The tribunal further clarified that the overseas transactions related to IPL 2009 were current account foreign remittances and not capital account transactions. It also stated that Lalit Modi was neither responsible for ensuring FEMA compliance on behalf of the BCCI nor authorised to take financial decisions. While the tribunal quashed Modi's penalty entirely, it reduced the penalties imposed on former BCCI secretary N. Srinivasan, former treasurer M.P. Pandove and the BCCI in the same case. However, penalties imposed on Srinivasan and Pandove in another FEMA-related matter were allowed to stand.