The BJP led government is facing flak for going soft on former IPL Chief Lalit Modi, has finally swung into action. According to the media reports, the Enforcement Directorate has now issued summons to ex-IPL boss Lalit Modi in connection with an alleged money-laundering case registered against him .
Modi has been asked to appear in three weeks. The agency also recorded the statement of former BCCI Chief N Srinivasan. The case relates to a 2008 deal between World Sports Group (WSG) and Multi Screen Media (MSM) for television rights of Indian Premier League (IPL), worth Rs 425 crore.
BCCI, through Srinivasan, filed an FIR in Chennai, in 2010, under various provisions of the IPC, while two years later, the ED registered a case under Prevention of Money Laundering Act (PMLA) in the matter. In 2008, the BCCI awarded 10-year media rights to WSG for USD 918 million. In the same year, WSG entered into a deal with MSM to make Sony the official broadcaster. The contract was replaced a year later with a nine-year deal, where MSM paid USD 1.63 billion.
The ED started a probe in 2009 under Foreign Exchange Management Act (FEMA) to investigate allegations that a payment of Rs 425 crore facilitation fees by MSM Singapore to WSG Mauritius was made in an illegal way.The payments were made to “unauthorised beneficiaries” and not the cricketing regulating bodies as per the terms of the contract, ED said.
While ED has issued summons, there is a twist to it too. The former IPL Chief has denied that he has received any summons from the Enforcement Directorate.