Mumbai: Seeking to know whether Indian Premier League (IPL) tournament was a "profiteering" venture, the Bombay High Court has asked BCCI and IPL to give information on the income generated from T-20 matches that were played in Maharashtra.
The court's directive came in response to a Public Interest Litigation (PIL) filed by Shiv Sena MLA Subhash Desai, demanding that the state collect entertainment tax from the IPL.
A division bench of Justices P B Majmudar and Rajesh Ketkar also asked the IPL to maintain accounts of remaining matches in the current season which would take place in the state.
The High Court directed both the cricket bodies to furnish copies of their respective constitutions, and memorandum of articles at the next hearing on April 26.
Among other things, the court has sought information as to "whether IPL is a profiteering activity...the manner in which IPL and BCCI are functioning in organising T20 matches", as well as how BCCI "controls" IPL.
On reports that IPL tickets are priced at as high as Rs 40,000, the court also sought to know the ticket rates.
Desai's petition alleges the government decided to levy tax on IPL at a cabinet meeting in January but the decision was not implemented.
However, government pleader Dhairyashil Nalavade told the court on Thursday that only discussion was held on this issue and a decision had not been taken.
While asking the government to clarify whether it intended to impose entertainment tax on IPL, the High Court also commented upon consumption of electricity due to the day-night matches.
"Government should have some control on this...such a waste of electricity, only for this entertainment?" the judges said, referring to power cuts in neighbouring townships during the semi-final match in Navi Mumbai on Wednesday.
Earlier, during the arguments, the division bench asked, "Is this an entertainment or a sports activity? If industrialists are party to it, why special exemption is being given by the state to the IPL? This is a serious issue."
The court also expressed its unhappiness over BCCI not instructing its lawyer properly.
Advocate Neha Bhide, who appeared for BCCI, said the cricket body had no time to find a solicitor's firm in the middle of IT raids and the current on-goings.
But court said this was "a casual approach", and BCCI seemed to be only interested in making money. "Court matters must get priority... Perhaps BCCI officers are busy watching the matches," it said.
The court warned that if it accepted the petitioner's argument eventually, it would ask state to recover tax from the IPL "retrospectively", i.e. even for the last two tournaments.
The court's directive came in response to a Public Interest Litigation (PIL) filed by Shiv Sena MLA Subhash Desai, demanding that the state collect entertainment tax from the IPL.
A division bench of Justices P B Majmudar and Rajesh Ketkar also asked the IPL to maintain accounts of remaining matches in the current season which would take place in the state.
Among other things, the court has sought information as to "whether IPL is a profiteering activity...the manner in which IPL and BCCI are functioning in organising T20 matches", as well as how BCCI "controls" IPL.
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Desai's petition alleges the government decided to levy tax on IPL at a cabinet meeting in January but the decision was not implemented.
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While asking the government to clarify whether it intended to impose entertainment tax on IPL, the High Court also commented upon consumption of electricity due to the day-night matches.
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Earlier, during the arguments, the division bench asked, "Is this an entertainment or a sports activity? If industrialists are party to it, why special exemption is being given by the state to the IPL? This is a serious issue."
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Advocate Neha Bhide, who appeared for BCCI, said the cricket body had no time to find a solicitor's firm in the middle of IT raids and the current on-goings.
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The court warned that if it accepted the petitioner's argument eventually, it would ask state to recover tax from the IPL "retrospectively", i.e. even for the last two tournaments.
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