'Victim' Lalit Modi turns fugitive: ED swings into action, sends letters rogatory to two countries

After the denials, comes the pursuit. After being stung by allegations against External Affairs Minister Sushma Swaraj and Rajasthan Chief Minister Vasundhara Raje, the central government is going all out to show its seriousness in prosecuting former IPL chief Lalit Modi in connection with money laundering allegations.

The Indian Express reported that the government had sent Enforcement Directorate officials to Singapore to expedite the letters rogatory – a formal request from a court to a foreign court for judicial assistance – sent to the country regarding the former IPL chief earlier.

The report said that the agency had sent letters rogatory to the Singapore and Mauritius seeking information on the former IPL chief.

The Economic Times reported that the ED would also be sending a letter rogatory to the UK in connection with the Prevention of Money Laundering Act case that has been lodged against Modi.

What is the Enforcement Directorate doing?

Officials said the agency has initiated the “legal procedures” to obtain from a court two Letters Rogatories (overseas judicial requests) to be sent to the two countries as part of its probe in the alleged laundering of funds in awarding media rights of the money spinning cricket tournament in 2009.

An ED team from its Mumbai zonal office has also been sent to Singapore, but officials indicated they are part of an investigating team probing another case under the Prevention of Money Laundering Act (PMLA).

However, it is understood, the team could gather some important leads in connection with this deal case where the ED has recently issues show causes under foreign exchange violation laws to Modi and 13 other BCCI-Indian Premier League (IPL) officials and other private entities.

What is the case about?

The BCCI had lodged an FIR against Lalit Modi in connection with the Rs 468 crore deal struck between World Sports Group (WSG) and Multi Screen Media (MSM) for television rights of IPL. The complaint, in turn, led to the ED registering a money laundering case against him, accusing him of being the beneficiary of the money given by MSM to WSG.

Enforcement Directorate officials have earlier indicated that this being the only criminal case against the IPL-BCCI and Modi, they may further seek to notify an Interpol Red Corner notice against the former IPL chief to make him join investigations after deporting him from the United Kingdom.

The ED, in its showcause issued in February this year under the Foreign Exchange Management Act (FEMA) in this case, has charged Modi of sending “fraud” emails and being a suspect beneficiary of Rs 125 crore illegal funds in connection with its Rs 425 crore forex violations probe for granting media rights of the T-20 tournament in 2009 by BCCI.

The central probe agency, after completing its six-year-old FEMA probe in the case, had slapped a show-cause notice against 14 individuals and entities which includes Modi, Srinivasan, IPL COO Sundar Raman, IMG Vice President and BCCI- IPL legal advisor Paul Manning, officials of the World Sports Group (Mauritius), Multi-Screen Media Satellite (Singapore) and other company executives for prima facie “contravening” the provisions of the FEMA in executing this deal.

The case is under adjudication at present and is one of the important ones amongst the two dozen hawala and money laundering instances that the ED is probing with regard to the conduct of various editions of the IPL.

The Enforcement Directorate (ED) had also widened its probe into a foreign exchange violation case against former IPL boss Lalit Modi and others which involves alleged illegal routing of Rs 21 crore funds from a Mauritius- based company.

The agency, as part of its FEMA probe, had reportedly written to agencies like the Income Tax department, RBI and the Registrar of Companies (RoC) to obtain detailed information about the operations of the Rajasthan registered firm, said to be owned by Modi and his family members.

The timing of the case

The interest in Modi’s case comes even as the Congress has continued to target the government over the Rajasthan Chief Minister’s links with the former IPL chairman. The Congress on Monday had accused  Raje and her son of colluding with Modi on a hotel project while the BJP has stoutly denied the allegations.

The Prime Minister had in his radio address on Sunday chosen to stay clear of the controversy inviting flak from the opposition. However, as Firstpost’s Lakshmi Chaudhry had pointed out , while the Modi government has largely remained mum on the issue so far it had little choice but to act.

“Whatever the UPA government did, we can do better. That’s the message the Modi sarkar will have to send in the days to come. And dragging Lalit Modi back to India by the scruff of his neck may well be the only way to do it,” she had noted.

The former IPL chief has survived thanks to the good graces of his friends in high places so far. Unfortunately, after having burnt bridges with Raje and the Congress , and Swaraj unlikely to say anything in his defence this time round, Lalit Modi might find himself isolated as the Enforcement Directorate goes all out to prove the government’s impartiality in his case.

with inputs from PTI