BCCI faces heat over FEMA violation in IPL
The BCCI is under scanner of the Enforcement Directorate (ED) over alleged violation of FEMA during the IPL auctions. The contentious issue is the base fee agreed upon between the BCCI and 72 foreign players. The forex payment guarantees are in clear violation of FEMA or the Foreign Exchange Management Act. Documents obtained by Headlines Today show that the total base fee guarantee extended by the BCCI was worth 13.4 million dollars or Rs 62 crore. The foreign exchange guarantee was given by the board without permission from the RBI. Foreign exchange transactions made during IPL 2 in South Africa too are under the scanner. These transactions were made with entities like Cricket South Africa and the sponsors. The BCCI had advanced 2.5 million dollars to enable budgeted costs of Cricket South Africa. Several transactions made to persons residing outside India and the sources of these funds too are being investigated. Juhi Chawla under scannerMeanwhile, Juhi Chawla, a co-owner of the Kolkata Knight Riders, has come under the scanner for alleged FEMA violation. An ED note accessed by Headlines Today reveals that 40 lakh shares of Chawla were transferred to a Mauritius-based company. The shares were transferred at par in violation of FEMA. The norms stipulate that since the shares were that of an unlisted company, they should have been valued by a chartered accountant. The ED report also cites similar irregularities in Kings XI Punjab and Rajasthan Royals.