Bombay High Court Slams Lalit Modi's Frivolous Plea, Imposes ₹1 Lakh Cost
The Bombay High Court, on Thursday, dismissed a petition filed by former Indian Premier League (IPL) commissioner Lalit Modi, imposing costs of ₹1,00,000 for filing what it deemed a "misconceived and frivolous" plea. Modi's petition sought a directive compelling the Board of Control for Cricket in India (BCCI) to indemnify him by paying a penalty of ₹10.65 crore imposed by the Enforcement Directorate (ED) for alleged violations of the Foreign Exchange Management Act (FEMA) during the 2009 IPL season. A Division Bench comprising Justice M.S. Sonak and Justice Jitendra Jain held that the BCCI, in this instance, was not discharging any public function and, therefore, could not be subjected to a writ petition for indemnification.
"The petition is frivolous, and we dismiss it with costs of ₹1,00,000 payable to Tata Memorial Hospital," the Court declared. It clarified that indemnifying Modi against penalties imposed by the ED did not constitute any public function performed by the BCCI. Consequently, the issuance of a writ against the BCCI for such a purpose was unwarranted. The Bench further noted that the relief sought by Modi was "entirely misconceived" and could not justify the issuance of a writ of mandamus. The ₹10.65 crore penalty against Modi arose from a larger ED investigation into financial irregularities during IPL 2009, which was conducted in South Africa. The investigation revealed that over ₹243 crore had allegedly been transferred outside India in violation of FEMA regulations.
In 2018, the ED levied penalties amounting to ₹121.56 crore on various entities, including the BCCI, its former chairman N. Srinivasan, and others. Modi's ₹10.65 crore penalty was the subject of his petition, in which he attempted to shift this financial burden on to the BCCI. The Court emphasized that the BCCI could not be held accountable for settling penalties imposed on Modi by the ED and rejected his plea to invoke the Court's jurisdiction to compel the BCCI to assume his financial liabilities.
In dismissing the petition, the Court underscored its stance against frivolous legal claims, particularly those involving unfounded financial demands. The Bench ordered Modi to pay the costs of ₹1,00,000 to Tata Memorial Hospital and directed him to submit proof of payment within four weeks. "This petition is frivolous and accordingly dismissed with costs of ₹1,00,000, payable to Tata Memorial Hospital (Account No. 1002449683, IFSC Code: CBIN0284241, Bank Name: Central Bank of India). The petitioner is required to file proof of payment in this Court within four weeks," the Bench concluded.
Cause Title: Lalit Kumar Modi v. Board of Control for Cricket in India and Ors.
Citation No: 2024:BHC-OS:21081-DB
Case No: Writ Petition 3077/2019
Date: December-19-2024
Bench: Justice M.S. Sonak, Justice Jitendra Jain
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