New Delhi:
Lalit Modi's tweets unleashed the drama that took Shashi Tharoor hostage for a week, before he resigned as minister under considerable pressure from his own party on Sunday night. Modi will not go unscathed either.
Sources have told NDTV that Lalit Modi will be sacked as Indian Premier League (IPL) chief and action against him is likely at the IPL governing council meet to be held soon.
The sources said BCCI president Shashank Manohar is likely to take over as IPL chairman.
Modi will face charges for arm-twisting franchises. Tharoor had alleged that Modi delayed signing the Kochi tender for a month.
There is also some bad news for all IPL owners. The government will probe the source of funds of all teams and possible foreign exchange violations.
The Income Tax Department is well into its inquiry and has sent summons to the BCCI seeking details of the IPL franchisees. The Enforcement Directorate (ED) too has started its probe. It has set up eight teams to probe foreign exchange violations by IPL. The ED will also scan transactions and flow of IPL funds.
As Parliament raises the issue of who's funding the Indian Premier League (IPL), and how, Finance Minister Pranab Mukherjee has announced that the crores poured into the billion-dollar league are now being investigated, one cricket team at a time.
"The concerned department has already started investigation process (into the IPL episode). All aspects including sources of funding and routes through which the funds arrived would be looked into. Appropriate action as per law would be taken. No guilty or wrong-doer will be spared," Mukherjee said in Parliament on Monday.
Here's what the investigators want to look into the detailed ownership structure:
Sources say that with listed companies and issues of corporate governance involved, there is a strong case for action - one premised on basics like whether provisions of company law have been violated, or whether shareholder approval was sought by IPL team owners.
While it's the bankrolling of the IPL and the BCCI that's become the big question, the biggest target of tax and other inquiries could be IPL Commissioner Lalit Modi.
It's Modi's tweets that unleashed the drama that took Tharoor, a minister, hostage for a week, before he resigned under considerable pressure from his own party on Sunday night. His link to the Kochi IPL team, auctioned last month, proved to be indefensible, say party sources. (Read & Watch: Shashi Tharoor resigns after Congress says enough)
Modi tweeted last Monday that the ownership of the Kochi franchise was murky; he pointed out that Sunanda Pushkar, Tharoor's girlfriend, was a part of the consortium and had been gifted equity worth Rs 70 crores. Tharoor was charged by the Opposition with misusing his office to lobby for the Kochi team-owners, and of using Pushkar as a Rs 70-crore front. Although he told NDTV he would not resign, Tharoor was forced to quit after his party made it clear that his link to the Kochi franchise had been inappropriate. (Read & watch: Won't resign over IPL controversy, says Tharoor) | (Full transcript of Tharoor's interview to NDTV)
But Modi is hardly left unscathed, and his wounds are self-inflicted. After busting open the cupboard where apparently many powerful and rich players have stored skeletons for several years, Modi's own assets are being checked thoroughly. Despite demurrals that he has nothing to hide, Modi's friends and family are co-owners of three different IPL teams, and the new government-ordered inquiries will ascertain whether these are fronts for Modi. Sources say 4500 of his transactions are being checked out by tax officials. (Read: It is not Modi vs Tharoor, says Lalit Modi)
Last week, income tax officials visited the Mumbai offices of the IPL and Modi in Mumbai. The visit was described as a "survey." But the investigation is much more rigorous. Officials handling the inquiry tell NDTV that they expect, by Friday, to get the details from IPL franchisees on their bids. The Kochi IPL team's documents have already been handed over. Officials will look at the source of funding of the investors in the franchisees, and whether the franchisees in turn paid their taxes.
The allegations shot off by him, and the attention that Modi has drawn to the issue of ownership has not gone down well with his colleagues at the IPL, which is a sub-committee of the Board of Control for Cricket in India (BCCI).
Sources say Modi may be asked to quit as IPL Commissioner. The IPL's governing council, which is reportedly against Modi, is meeting later this month. It will be followed by a meeting of the BCCI Working Committee, where a final call is likely to be made.
Within the IPL's governing council, Modi's three biggest detractors are IPL vice-president Niranjan Shah, BCCI chief Shashank Manohar and N Srinivasan, BCCI secretary.
Those still rooting for Modi are former cricketers Mansoor Ali Khan Pataudi, Sunil Gavaskar and Ravi Shastri.
Taking the middle path, for now, are Rajiv Shukla, senior BJP leader Arun Jaitley and National Conference leader Farooq Abdullah.
Income Tax inquiry against Lalit Modi
Sources say:
Sources say:
Sources have told NDTV that Lalit Modi will be sacked as Indian Premier League (IPL) chief and action against him is likely at the IPL governing council meet to be held soon.
The sources said BCCI president Shashank Manohar is likely to take over as IPL chairman.
Modi will face charges for arm-twisting franchises. Tharoor had alleged that Modi delayed signing the Kochi tender for a month.
There is also some bad news for all IPL owners. The government will probe the source of funds of all teams and possible foreign exchange violations.
The Income Tax Department is well into its inquiry and has sent summons to the BCCI seeking details of the IPL franchisees. The Enforcement Directorate (ED) too has started its probe. It has set up eight teams to probe foreign exchange violations by IPL. The ED will also scan transactions and flow of IPL funds.
As Parliament raises the issue of who's funding the Indian Premier League (IPL), and how, Finance Minister Pranab Mukherjee has announced that the crores poured into the billion-dollar league are now being investigated, one cricket team at a time.
"The concerned department has already started investigation process (into the IPL episode). All aspects including sources of funding and routes through which the funds arrived would be looked into. Appropriate action as per law would be taken. No guilty or wrong-doer will be spared," Mukherjee said in Parliament on Monday.
Here's what the investigators want to look into the detailed ownership structure:
- The source of funds
- Any possible foreign exchange violations
- Or violations in foreign investment rules
- They also want to know where the owners took shareholders' approval
Sources say that with listed companies and issues of corporate governance involved, there is a strong case for action - one premised on basics like whether provisions of company law have been violated, or whether shareholder approval was sought by IPL team owners.
While it's the bankrolling of the IPL and the BCCI that's become the big question, the biggest target of tax and other inquiries could be IPL Commissioner Lalit Modi.
It's Modi's tweets that unleashed the drama that took Tharoor, a minister, hostage for a week, before he resigned under considerable pressure from his own party on Sunday night. His link to the Kochi IPL team, auctioned last month, proved to be indefensible, say party sources. (Read & Watch: Shashi Tharoor resigns after Congress says enough)
Modi tweeted last Monday that the ownership of the Kochi franchise was murky; he pointed out that Sunanda Pushkar, Tharoor's girlfriend, was a part of the consortium and had been gifted equity worth Rs 70 crores. Tharoor was charged by the Opposition with misusing his office to lobby for the Kochi team-owners, and of using Pushkar as a Rs 70-crore front. Although he told NDTV he would not resign, Tharoor was forced to quit after his party made it clear that his link to the Kochi franchise had been inappropriate. (Read & watch: Won't resign over IPL controversy, says Tharoor) | (Full transcript of Tharoor's interview to NDTV)
But Modi is hardly left unscathed, and his wounds are self-inflicted. After busting open the cupboard where apparently many powerful and rich players have stored skeletons for several years, Modi's own assets are being checked thoroughly. Despite demurrals that he has nothing to hide, Modi's friends and family are co-owners of three different IPL teams, and the new government-ordered inquiries will ascertain whether these are fronts for Modi. Sources say 4500 of his transactions are being checked out by tax officials. (Read: It is not Modi vs Tharoor, says Lalit Modi)
Last week, income tax officials visited the Mumbai offices of the IPL and Modi in Mumbai. The visit was described as a "survey." But the investigation is much more rigorous. Officials handling the inquiry tell NDTV that they expect, by Friday, to get the details from IPL franchisees on their bids. The Kochi IPL team's documents have already been handed over. Officials will look at the source of funding of the investors in the franchisees, and whether the franchisees in turn paid their taxes.
The allegations shot off by him, and the attention that Modi has drawn to the issue of ownership has not gone down well with his colleagues at the IPL, which is a sub-committee of the Board of Control for Cricket in India (BCCI).
Sources say Modi may be asked to quit as IPL Commissioner. The IPL's governing council, which is reportedly against Modi, is meeting later this month. It will be followed by a meeting of the BCCI Working Committee, where a final call is likely to be made.
Within the IPL's governing council, Modi's three biggest detractors are IPL vice-president Niranjan Shah, BCCI chief Shashank Manohar and N Srinivasan, BCCI secretary.
Those still rooting for Modi are former cricketers Mansoor Ali Khan Pataudi, Sunil Gavaskar and Ravi Shastri.
Taking the middle path, for now, are Rajiv Shukla, senior BJP leader Arun Jaitley and National Conference leader Farooq Abdullah.
Income Tax inquiry against Lalit Modi
Sources say:
- I-T Department to scrutinise all IPL franchisee allotments by Modi
- I-T Department puts all Lalit Modi's businesses under investigation
- I-T Department to study all financial transactions by BCCI over 3years
Sources say:
- I-T Department summons BCCI on April 23 for enquiry
- I-T Department has adjusted TDS refund of Rs 90 cr against tax claim of Rs 120 cr from BCCI
- Dispute over tax claim for FY07 against BCCI is being heard by the tribunal
- I-T Department is also likely to summon individual franchisees
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