The special court under the Prevention of Money Laundering Act has issued a non-bailable arrest warrant against former Indian Premier League chief Lalit Modi on allegations of money laundering. The warrant was issued by the court in Mumbai based on a plea by the Enforcement Directorate.
The case dates back to 2009, when Lalit Modi terminated a media rights deal awarded by BCCI to World Sports Group (WSG) and signed a fresh deal with Multi Screen Media (MSM). According to the investigating agencies MSM was made to pay ₹425 crore to WSG for the rights.
According to the show cause notice filed by the ED in February, “It appears that the BCCI and Lalit Modi manipulated the terms of the contracts between BCCI-MSM and BCCI-WSG, so that the asset of ₹425 crore created under the deed for provision of facilitation services, could be transferred to WSG and the contract could be made legally enforceable.”
The ED is probing whether Lalit Modi had benefited by around ₹125 crore from the deal. Modi has denied these charges.
The ED has started investigating after the BCCI lodged an FIR in Chennai in October 2010 raising questions on the contracts signed by the IPL for telecast rights.
In July this year, the ED issued summons to Modi. However the investigating agency did not receive any reply. Reacting to media reports, Modi had tweeted: “I have received no summons. They know where I live in London. Awaiting the same.”
The ED, on July 27, moved the special PMLA Court seeking a warrant against Modi. The warrant will be routed through the Ministry of External Affairs, which will send it to the UK through diplomatic channels. Modi has been based in London since 2010.