BCCI Charged with Forex Violations in IPL

Tuesday, September 7th, 2010 at 11:55 am , filed under IPL by Victor Mavis

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The Enforcement Division (ED) is set by the Board of Control for Cricket in India (BCCI) to have violated exchange control regulations.

The ED believes that BCCI kept the Reserve Bank of India (RBI) in ignorance of the financial guarantees of approximately $ 13.4 million (R62 crore), gave international cricketers for their participation in the Indian Premier League (IPL).

In a confidential report, the ED states that the Board has agreement with 72 foreign players until they pay a basic fee in foreign currency without obtaining the necessary approvals.

This payment was entirely different to all the IPL franchisees paid to buy players at auctions, and has never been disclosed publicly.

Under the Foreign Exchange Management Act (FEMA), no resident Indian may offer financial guarantees in foreign currency without the approval of RBI.

This means that the BCCI has said that the finance authorities that ever charges it is done in advance of South African entities are not be considered to be the loss of foreign exchange.

Tags: BCCI, Forex Violations, IPL