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Sparks to fly at Board meeting |
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Profit estimates
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MONEY, MODI & MAURITIUS Its not just Lalit Modi but the Board of Control for Cricket in India (BCCI) which is also in the dock. The Board can scarcely absolve itself of its failure to rein in Modi despite a bloated IPL Governing Council of 17 members, which included legal eagle Arun Jaitley, MP Rajiv Shukla, Board Secretary N. Srinivasan and former cricketers Sunil Gavaskar and Ravi Shastri among others. Shukla, in fact, was the chairman of the finance committee
It was the BCCI which created the IPL and appointed Lalit Modi as the Chairman and match commissioner for five years. It could have asked for his resignation at any point of time. But if it chose to turn a blind eye, it was solely because IPL was bringing in the kind of money through the IPL which the BCCI never believed existed in the game, played in mostly nine Test playing countries-India, Pakistan, England, Australia, New Zealand, West Indies, South Africa, Sri Lanka and Bangladesh. But now that skeletons are tumbling out of the cupboards, Board president Shashank Manohar has called a meeting of the IPL Governing Council on Monday, April 26 in Mumbai to grill Modi and show him the door. Persuading him to resign will be a lot easier than sacking him though. For, if Modi goes for a free fall, not only his head would roll, he would also blow the whistle which may take a toll on the heads of some powerful people in the Board as well. "Removing Modi is not a problem. The IPL Governing Council will have to pass a resolution which should then be placed before the Working Committee for approval before it is put before the General Body for ratification", a member of the Board said. He said another option was to amend the constitution at the General Body Meeting for the removal of Modi, and for recasting the IPL top job, which should hence forth be made to report to the Working Committee. The BCCI can also call an extraordinary General Body Meeting to get rid of Modi from the IPL top job. "There are any number of options as Modi is not indispensable. Anybody can do the job he had been doing as IPL boss. In any case, the leg work for the IPL matches were being done by the franchisees and the State Cricket Associations", the sources within the BCCI said. If Modi is divested of the IPL job, the onus is likely to be placed on BCCI president Shashank Manohar or a team of officials nominated by him and the Governing Council. As of now, the 17-member IPL Governing Council is packed in favour of the BCCI, though Modi still has his constituency of hard-core supporters who include Punjab Cricket Association president Indrajit Singh Bindra and Pawar himself.
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Sparks to fly at Board meeting Modi has been put on the dock with allegations that earlier bids for the eight franchisees were rigged and slush money, unaccounted money and funds from foreign sources were used to buy some of the IPL franchisees through front men and women. Government sleuths are now on the job to unravel the entire gamut of the IPL operations, including the award of many lucrative contracts, including Television rights to Sony's Multi Media Entertainment. There have been allegations of match-fixing and other illegal practices, but these charges against Modi will stick only if definite proof of his involvement in shady deals are brought out. Modi's relatives having stakes in some of the franchisees like Rajasthan Royals, Kolkata Knight Riders and Kings XI Punjab are no big crime, if the bids were won fairly. But Modi would have to conclusively explain to the taxmen's and BCCI's satisfaction how he allegedly reaped so much riches in a short span of time-a private plane, many luxury cars etc. But so far, nothing has been established to substantiate that the franchisee owners paid cutbacks, other than perhaps obliging Modi's men with shares-an accusation Modi had levelled against Shashi Tharoor and his friend Sunanda Pushkar. The franchisees had paid their money through cheques and even if money laundering had taken place, it might not have happened at the final deal, which may provide a reprieve for Modi.But people in the know of the IPL affairs claim that every deal in the IPL was done at Modi's behest and the Board had no clue about the actual financial transactions other than getting its own share of profits. So long as the going was good, the BCCI kept quiet, but now that Modi has been caught in a cleft stick, BCCI is leading the call to make Modi accountable, and clean up the IPL mess and to make everything transparent. It had all along been suspected that some of the owners of the IPL were mere mascots, and the real men operated behind a veil. The Government enquiry is expected to unmask such people, who may include some political big wigs, and may be some underwold dons. But no franchisee, barring Rendezvous, has made any allegation against him. In fact, Vijay Mallya of Royal Challengers Bangalore has come out in support of Modi. And no former or present player has questioned the unqualified success of the IPL matches, which were held under strict rules and regulations. In fact, the IPL has changed the way cricket was played and enjoyed in the world, and Modi can be pinned only if he has committed financial irregularities. That Modi tried to favour the Videocon and Adani groups' franchisee bids, and he wanted the Kochin franchisee to shift base to Ahmedabad for a price, are yet to be proved. "If Srinivasan could buy an IPL franchise, where is the clash of interest if Modi's relatives bought shares in IPL franchises?", wonders a Modi supporter. The issue of wider ramification is whether kick-backs were involved in the many financial transactions Modi made as the IPL chairman and match commissioner, whether matches were tanked to rake in the moolah etc. These are allegations which may take quite an effort to stick, but if proved right, Modi may not only face the sack, but may face other punitive actions as well. MSU
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Charges against Modi and his defence
He has silent ownership in three IPL teams, namely RR, KKR and KingsXI (Denied by the owners) He is guilty of breach of trust and violating a
confidentiality clause (Modi wanted to disclose owner ship details of all teams but was restrained.) Favoured Videocon and Adani bids (Videocon had won the bid in Mumbai but BCCI cancelled the auction.) Modi's relatives cornered contracts for global TV broadcast, live internet streaming, portals etc. They also have stakes in teams. (BCCI secretary N Srinivasan too bought the Chennai Super Kings team.) He received kick backs (Probable since commissions are so widely prevalent) Acquired private plane, luxury yatcht. (Subject of inquiry by the IT Department) Money laundering, Fema
violations, match fixing (Being inquired by the ED)
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THE RISE AND FALL OF the czar of cricket It took less than seven years for Lalit Modi to make the transition from being practically a nobody to one of the most powerful men in India's most cash-rich sport. It all began in 2003 when he got himself nominated as the president of the Nagaur District Cricket Association in Rajasthan. His ancestors come from Shekhawati area, known for producing some of the finest businessmen. His grandfather Gujarmal Modi is said to have been close to Jawahar Lal Nehru while his father KK Modi was also close to the Gandhi family. His grandmother and Vasundhara Raje's mother were close friends. With Raje as the Chief Minister, Lalit Modi perhaps found it easier to throw out the Rungtas, the clan that controlled cricket in the desert state for over five decades. He , along with Sanjay Dixit, an ambitious IAS officer, soon called the shots in the state. Dixit, who earned the sobriquet from the Congress of being 'Mr Fixit", is ironically a sworn enemy of Modi, who was described as the 'super CM' and 'Mr 10 per cent' by the opposition then. A sports ordinance issued by the then BJP regime took away the voting rights of individual members. The ordinance left Kishore Rungta without 66 key votes, which had played a key role in his election as the RCA chief in the past. Modi also took advantage of the polarisation in the BCCI against Jagmohan Dalmia and soon managed to topple the Rungtas. He went on to become the youngest BCCI vice-president. IAS and IPS officials would reportedly queue up outside his plush suite in a five-star hotel whenever he visited Jaipur. The present CM, Ashok Gehlot, would often allege, "The Super CM calls officials to five-star hotels to pressure them to clear their deals." Gehlot made corruption and Modi-bashing as his key election plank and often dubbed him as "extra-constitutional authority" during poll rallies. He remained in the news for humiliating bureaucrats and for slapping a constable , who had strolled into his box at the SMS stadium. Allegations of dubious land deals and purchase of heritage havelis dogged him. The return of the Congress into power in December 2008 ushered in bad times for Modi, who lost two RCA elections in less than a year - first to Dixit and then to Union Minister CP Joshi. He is also facing charges of embezzling funds to the tune of Rs 6 crore which the IPL had promised to give to the Chief Minister's Relief Fund for Jaipur blast victims. He is also facing a forgery case regarding a land deal in Nagaur district of the state. It is alleged that Modi, who was eying the top RCA post in 2004 but was not a domicile of the state, bought a piece of land in Nagaur using forged signature. Dixit too alleged that Modi's entry into the RCA was based on the forged documents. "There was one Lalit Kumar as president of the Nagaur cricket body. As Modi had to become a district body representative, he presented himself as the same Lalit Kumar of Nagaur. Even today, Modi is only Lalit Kumar in the RCA records. Moreover, discrepancies have been found in the signature of Modi and Lalit Kumar of Nagaur but Modi has managed to survive," Dixit further charged. Modi has his loyalists though. They claim that Modi spent some Rs 20 crore for transforming Jaipur's Sawai Man Singh (SMS) Stadium into one of the best in the country with two new blocks, media rooms and galleries. He also spent Rs 7 crore to create a state-of-the art cricket academy, complete with 28-appointed rooms, a gym, a restaurant, two conference halls and a swimming pool. His rivals levelled charges of financial bungling against him and the RCA even constituted a three-member committee to probe into the charges last year. Significantly, the inquiry is still on. "Modi is a go-getter and he knows how to get his work done. However, not many like his autocratic style of functioning. People need to understand him so as to work with him," says Bimal Soni, who had long association with Modi during the latter's stint with the RCA. Soni says Modi thoroughly enjoys his evenings. "He is a normal socialite, a vegetarian and a small eater," he recalled.
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Profit estimates
How much has the Indian Premier League ( brand value estimated at Rs 18,000 crore) raked in ? While various figures are in circulation, credible estimates are that in 2008 it recorded profits worth Rs 662 crore. The next year it posted a profit of Rs 774 crore and this year it is expected to break the 1,000 crore barrier with a profit of over Rs 1,100 crore. But the IPL is unlikely to get an exemption from tax liabilities, which it enjoyed so far by virtue of being a part of the BCCI, which is registered as a charitable organisation. Modest gain
for teams
But the teams are expected to post far more modest profits this year. Financial analysts reckon that Chennai Super Kings ( CSK), for example, earned a relatively modest revenue of Rs 35 crore in the first season and Rs 45 crore in the second. But each year it had to pay a franchise fee of Rs 36 crore to the IPL and in the two years taken together, the franchisee, Indian Cement, made a payment of Rs 55 crore to the players. Morning shows
the day
Modi, media reports claim, always set his sights high. When he was a student in England, the tale, apocryphal or not, holds, Modi's industrialist father sent him 5,000 Pounds Sterling to buy a car. While Modi senior wanted him to buy a small, utility car, the son is said to have gone straight to a Mercedes dealer and booked his first Merc. Headstrong
It seems the BCCI's fall guy married his mother's friend, who was already married and was nine years his senior. She had a daughter from her first marriage and the couple's wedding plans, after she obtained a divorce, met with stiff resistance from his family. But the man had his way and the marriage seemingly worked out for them. But the IPL controversy has come at the wrong time for him as his wife has been diagnosed with cancer and reports hint at his association with a South African model. Where were they?
The Income Tax department, Enforcement Directorate, the Registrar of Companies and other agencies under the Finance ministry and the ministry of company affairs claim they had information about the sleaze but did not have the 'mandate' to act. The brazen admission confirms what is already known, that though they are the watchdogs, whistle blowers and the hounds, they serve political bosses and not rule of the law. Watch out
It is not clear if this is a proxy war but A. Muthaiah, who has filed a petition before the Supreme Court objecting to BCCI bending rules to allow its office bearers to bid and buy teams for the IPL, is known to be close to Jayalalithaa. BCCI secretary N.Srinivasan , who owns the Chennai Super Kings, is on the back foot. But it's not clear if he has the backing of the TN Chief Minister though he does seem to have the backing of the Tamil media which are silent on IT raids and the petition. IPL nights
Former model Mehr Jessia Rampal and her husband actor Arjun Rampal are believed to have been paid a sum upwards of Rs 15 crore (other reports speak of Rs 20 and Rs 24 crore) for organising 15-minute fashion shows at 55 IPL Night parties. The fully sponsored parties started after midnight, continued till early morning and drew several hundred people, each of whom paid Rs 40 thousand for the privilege.
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MONEY, MODI & MAURITIUS
THE RISE AND FALL OF the czar of cricket
The rise and fall of Lalit Modi reflects poorly on the BCCI, which claims it was kept in the dark about the deals and details of the IPL. How could the richest sports body in the world allow itself to be conned by one man ? But the signs are clear. The Board is looking for a fall guy, a scapegoat if you will.