Mumbai:
Another frontier of the Indian Premier League (IPL) is now being investigated for financial irregularities.
Income tax officials searched the offices of the two groups associated with telecasting IPL matches. Those companies are World Sports Group and Sony Multi Screen Media (MSM).
What tax officials are trying to do is connect the dots between these groups and IPL Commissioner Lalit Modi. (Read: Lalit Modi questioned by I-T offcials)
The global broadcast rights were originally bought in 2008 by WSG for ten years for more than 900 million dollars. The TV rights for India were then allotted by WSG to MSM. However, in 2009, the IPL cancelled the MSM contract, citing, among other reasons, poor-quality broadcasts. MSM went to court, but after a tough legal battle, decided on an out-of-court settlement.
The new deal saw MSM paying more than a billion dollars to hold onto the TV rights for the remaining nine years. There were allegations that MSM had also given WSG an 80 million dollar facilitation fee as part of its agreement.
The Board of Control for Cricket in India (BCCI) had earlier said that it was not privy to the details of the new telecast deal.
The income tax visits - officials will not describe them as raids - are a part of the government's promised attempt to clean up what many describe as one of the most corrupt acts in India. (Read: Tax inquiry for Kochi IPL team starts in Pune with Gaikwads)
Last week, IPL Commissioner Lalit Modi's tweets pushed the issue of unaccounted-for money with unrelenting force into Parliament. Modi's allegations against Shashi Tharoor forced the minister to resign. But his tweets could also be his own undoing. His job is at stake. Modi says he will not resign and will fight back at a governing council meeting on the 26th of this month. (Read: Modi prepares defense, says won't resign)
Income tax officials searched the offices of the two groups associated with telecasting IPL matches. Those companies are World Sports Group and Sony Multi Screen Media (MSM).
What tax officials are trying to do is connect the dots between these groups and IPL Commissioner Lalit Modi. (Read: Lalit Modi questioned by I-T offcials)
The global broadcast rights were originally bought in 2008 by WSG for ten years for more than 900 million dollars. The TV rights for India were then allotted by WSG to MSM. However, in 2009, the IPL cancelled the MSM contract, citing, among other reasons, poor-quality broadcasts. MSM went to court, but after a tough legal battle, decided on an out-of-court settlement.
The new deal saw MSM paying more than a billion dollars to hold onto the TV rights for the remaining nine years. There were allegations that MSM had also given WSG an 80 million dollar facilitation fee as part of its agreement.
The Board of Control for Cricket in India (BCCI) had earlier said that it was not privy to the details of the new telecast deal.
The income tax visits - officials will not describe them as raids - are a part of the government's promised attempt to clean up what many describe as one of the most corrupt acts in India. (Read: Tax inquiry for Kochi IPL team starts in Pune with Gaikwads)
Last week, IPL Commissioner Lalit Modi's tweets pushed the issue of unaccounted-for money with unrelenting force into Parliament. Modi's allegations against Shashi Tharoor forced the minister to resign. But his tweets could also be his own undoing. His job is at stake. Modi says he will not resign and will fight back at a governing council meeting on the 26th of this month. (Read: Modi prepares defense, says won't resign)
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