Bombay HC Imposes Cost Of ₹1 Lakh On Lalit Modi For Frivolous Petition Seeking BCCI To Pay ₹10.65 Crore FEMA Penalty

The Bombay High Court on Thursday dismissed a petition filed by former Indian Premier League (IPL) chief Lalit Modi, imposing costs of Rs. 1 lakh on him for filing what it termed a "misconceived and frivolous" plea.

Modi’s petition sought a directive compelling the Board of Control for Cricket in India (BCCI) to pay a penalty of Rs. 10.65 crore imposed on him by the Enforcement Directorate (ED) for alleged violations of the Foreign Exchange Management Act (FEMA) during the 2009 IPL season.

The Division Bench of Justice MS Sonak and Justice Jitendra Jain dismissed the plea, ruling that the BCCI, in this context, was not performing any public function and, therefore, could not be compelled to indemnify Modi through a writ petition.

"This petition is frivolous, and accordingly, we dismiss it with costs of ₹1,00,000 payable to Tata Memorial Hospital," the Court stated.

The Court emphasized that indemnifying Modi for penalties imposed by the ED does not fall under any public function performed by the BCCI.

"In matters of alleged indemnification of the petitioner in the context of penalties imposed by the ED, there is no question of discharge of any public function. Therefore, no writ could be issued against the BCCI," the Bench clarified.

The Court further observed that the relief sought by Modi was "wholly misconceived" and could not form the basis of a writ of mandamus.

The Rs. 10.65 crore penalty on Modi was part of a larger investigation by the ED into financial irregularities during IPL 2009, which was held in South Africa. The probe revealed that over ₹243 crore had allegedly been transferred outside India in contravention of FEMA regulations.

In 2018, the ED imposed penalties totalling Rs. 121.56 crore on multiple parties, including the BCCI, its former chairman N Srinivasan, and others. Modi’s share of the penalty, Rs. 10.65 crore, became the subject of his now-dismissed petition, in which he sought to shift the financial liability to the BCCI.

The Court reiterated that the BCCI could not be held accountable for paying penalties imposed on Modi by the ED. The Bench rejected Modi’s attempt to invoke the Court's jurisdiction to compel the BCCI to bear his financial liabilities, underscoring that such a mandate would be legally untenable.

With the dismissal of the petition and the imposition of costs, the Court has made it clear that frivolous legal challenges, particularly those involving baseless financial claims, will not be entertained. The costs imposed on Modi are to be paid to Tata Memorial Hospital. "This petition is frivolous, and accordingly, we dismiss this petition with costs of Rs.1,00,000/- payable to Tata Memorial Hospital (Account No. 1002449683, IFSC Code: CBIN0284241, Bank Name: Central Bank of India) within 4 weeks from today. Necessary proof of payment should be filed in this Court," the Court ordered. 

Cause Title: Lalit Kumar Modi v. Board of Control for Cricket in India and Ors. [Neutral Citation No. 2024:BHC-OS:21081-DB]

Appearance:-

Petitioner: Advocates Mohit Goyal, Gaurav Gopal

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