Former Indian Premier League (IPL) chairman Lalit Modi has declared his intention to return to India by the end of this year or early next year, following a significant legal victory that concluded a 16-year battle.
On Tuesday, an appellate tribunal delivered a favorable ruling, setting aside the Enforcement Directorate's (ED) penalties against Modi in connection with the 2009 IPL South Africa Foreign Exchange Management Act (FEMA) case. The tribunal's decision marks a major turning point for Modi, who has been living abroad since the allegations first surfaced.
Tribunal Vindicates Modi in FEMA Case
The Appellate Tribunal under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act (SAFEMA) largely dismissed the ED's findings and penalties against Modi and other appellants. Reacting to the verdict, Modi expressed his satisfaction in a video message, stating, "16 years, I have fought and whatever I have been saying to the media and to everybody has finally emerged as the truth."
The case stemmed from the 2009 IPL season, which was moved to South Africa due to security concerns during India's general elections. The ED had alleged that the Board of Control for Cricket in India (BCCI) transferred foreign exchange amounting to $49.86 million (over Rs 243 crore) to an overseas entity without prior approval from the Reserve Bank of India, in violation of FEMA regulations.
ED's Allegations and Tribunal's Findings
The ED had issued FEMA show-cause notices in 2011 and subsequently passed penalty orders in 2018 against Modi, along with some former BCCI officials. These orders were then challenged before the SAFEMA Appellate Tribunal.
In its comprehensive 105-page order, dated July 16, the tribunal's division bench, comprising Chairman Justice Munishwar Nath Bhandari and Member Rajesh Malhotra, concluded that Modi "was 'not in-charge of the affairs and otherwise he has been framed in the case without any material showing his responsibility'." Consequently, the tribunal found the penalty imposed on Shri Lalit Modi to be "wholly erroneous" and intervened to set it aside.
"Personal Vindication" After Long Battle
Through a statement issued by his lawyer, Mehmood Abdi, Modi welcomed the ruling, emphasizing that the judgment reaffirmed the importance of due process. "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 stated.
He further added, "This judgment is not simply personal vindication. It reaffirms the importance of due process, objective legal analysis and the principle that allegations must ultimately be tested against evidence and law." Modi also mentioned a personal reason for his planned return, citing his daughter's impending delivery of his grandson in October.