IPL 2009 South Africa case: SAFEMA Tribunal sets aside most ED findings against BCCI, Lalit Modi

The Appellate Tribunal under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act (SAFEMA) has largely overturned the Enforcement Directorate’s (ED) findings and penalties against the Board of Control for Cricket in India (BCCI), former IPL chairman Lalit Modi and other appellants in the Foreign Exchange Management Act (FEMA) case relating to the 2009 Indian Premier League’s shift to South Africa.

A bench comprising Chairman Justice Munishwar Nath Bhandari and Member Rajesh Malhotra partly allowed the appeals against the ED’s order dated May 31, 2018. The order had imposed penalties on the BCCI, Modi, former BCCI president N. Srinivasan, M.P. Pandove, the State Bank of India and its former Chief Manager A.K. Nazeer Khan for alleged violations of FEMA.

The case pertains to the 2009 IPL season, which was moved from India to South Africa after the tournament clashed with the Lok Sabha elections. The ED had alleged that the BCCI contravened FEMA provisions by remitting funds overseas to organise the tournament and had imposed penalties amounting to several crores on the Board and its office-bearers.

In its order, the Tribunal set aside most of the ED’s conclusions. It also cleared the SBI and Chief Manager A.K. Nazeer Khan of liability, holding that the foreign remittances were processed in the ordinary course of banking operations and did not constitute FEMA violations on their part.

However, the Tribunal upheld the ED’s findings on two specific counts. It retained the Rs 4 crore penalty imposed on the BCCI for remitting an amount abroad that exceeded what was reflected in its books of accounts.

The Tribunal also agreed that there had been a delay in bringing back the proceeds from ticket sales to India. While it upheld the finding of a FEMA violation on this count, it reduced the penalty on the BCCI from Rs 4 crore to Rs 1 crore, observing that the funds had eventually been repatriated.

Reacting to the order, Lalit Modi said it reaffirmed the position he had maintained since the proceedings began more than 16 years ago.

“For over sixteen years, I have consistently maintained that I acted in good faith, in the best interests of Indian cricket and the IPL, and committed no personal wrongdoing,” Modi said in a statement.

He said the decision to relocate the IPL to South Africa in 2009 was taken under extraordinary circumstances after the Lok Sabha elections made it impossible to stage the tournament in India.

The Tribunal’s order substantially modifies the ED’s 2018 adjudication order in one of the longest-running legal cases arising out of the IPL’s relocation.

(With agency inputs)

Published on Jul 21, 2026