Preliminary investigations into the Indian Premier League (IPL) controversy by the income tax (I-T) department add several murky layers to the already dark issue.
It is particularly unflattering to the beleaguered IPL chief Lalit Modi. Betting, money laundering and an inexplicable lifestyle figure in the I-T report’s observations.
The report also names a socialite who conducts betting activities for Modi. Investigation of phone call records of the socialite has highlighted a constant interaction with bookies. During the IPL, the betting touched a new high, the report has observed.
According to the report, Modi has interests in at least three teams-Rajasthan Royals, Kolkata Knight Riders and the Mohali team Kings XI Punjab.
The report further points out how Modi has had a trail of failed media ventures and defaults till four years ago, but still boasts a lifestyle that includes a private jet, luxury yacht and fleet of Mercedes S class and BMW cars.
All this has been acquired by Modi in the last three years, the I-T report noted. It also said that Modi uses at least three mobile numbers and is involved in money laundering. It contains details about his close associates, including a former investment banker and an ex-bureaucrat.
Apart from these incriminating observations on Modi, the report also explains why the proposal of Jaipur IPL Pvt Ltd, owner of Rajasthan Royals, was rejected by the Foreign Investment Promotion Board (FIPB) last year and then deferred at least twice on representation against rejection.
Scrutiny of the information/documents furnished by the Board of Control for Cricket in India (BCCI) revealed violations of FEMA with respect to the transactions relating to payments of franchisee fee on behalf of Jaipur IPL, the report has said.
BCCI and IPL have not been able to give any satisfactory reply as to how the franchise agreement was signed by Jaipur IPL Pvt Ltd when the franchise was won by Emerging Media Ltd of the UK in the auction, the report has noted. Also, Jaipur IPL could not provide satisfactory proof of receipt of foreign exchange despite ample opportunities, it has added.
Even as Jaipur IPL had approached the Reserve Bank of India (RBI) for approval to issue shares to Emerging Media and EM Sports Holding Ltd Mauritius, the central bank had the application and advised it to approach the FIPB, the nodal agency in the finance ministry for clearing foreign investment proposals.
