Responded to ED, refuted charges: BCCI on foreign exchange violation

Responding to a report that was published in The Hindu alleging that the Enforcement Directorate has issued showcause notices to BCCI officials on foreign exchange violations, the cricketing body clarified today that it has given detailed replies to the ED refuting the same. In a press release, the BCCI said that the showcause notices were issued in July 2011 and October 2011. However, the BCCI said it has refuted all the charges. The BCCI also said that the report mentioning its top officials and bankers were charged with a welter of foreign exchange violations running to over Rs 1600 crores was ‘misleading.’ [caption id=“attachment_1122155” align=“alignright” width=“380”]  Reuters[/caption] “The total foreign exchange payments made to CSA and IMG covered by these notices were only Rs 283 crores,” it said. The BCCI also reiterated that these payments were bonafide and legitimate. “IMG had been engaged in order to provide expert assistance in conducting the IPL to international standards. IPL 2 was shifted to South Africa in 2009, since the Government of India was unable to make the necessary security arrangements since its forces were deployed for election duty.” “Rather than cancel IPL 2, which would have led to loss of prestige for India as a cricketing nation and led to loss of foreign exchange income by way of telecast rights, the BCCI shifted the tournament to South Africa. The agreement with Cricket South Africa was made in accordance with a well-established ICC practice by which the host country association organises international matches on a cost plus basis. CSA had organised such matches for ICC in the past. The BCCI has organised matches for ICC in India on the same basis,” it said in the release. In response to the showcause notices, the BCCI has pointed out that these transactions led to increased foreign exchange for India and that the BCCI had been professionally advised that these remittances were “current account transactions” that did not require prior approval of RBI. Further, it said that these remittances were made through an Authorised Dealer viz. a Nationalised Bank that is licensed by the RBI to conduct foreign exchange transactions after furnishing all the required documents and information called for. The BCCI said that there is no allegation that these remittances benefited any individual, or that there was loss of foreign exchange for India.