Bombay High Court Imposes Rs 1 Lakh Cost on Lalit Modi for Frivolous BCCI Indemnification Plea

The Bombay High Court has ordered Lalit Modi, a former cricket official, to pay Rs 1 lakh after rejecting his plea. Modi sought an order for the BCCI to cover a Rs 10.65 crore penalty imposed on him by the Enforcement Directorate (ED) for breaching the Foreign Exchange Management Act (FEMA). Justices M S Sonak and Jitendra Jain deemed the petition frivolous and without merit.

Modi's petition argued that during his tenure as vice president of the Board of Control for Cricket in India (BCCI) and chairman of the Indian Premier League governing body, he should be indemnified by the BCCI according to its bylaws. However, the court referenced a 2005 Supreme Court ruling stating that BCCI is not considered a State under Article 12 of India's Constitution.

Legal Context and Court's Decision

The High Court noted that despite clear Supreme Court directives, Modi filed this petition in 2018. The court highlighted that indemnification claims related to penalties imposed by the ED do not involve public functions. Therefore, no writ could be issued against the BCCI for such matters.

The court concluded that Modi's request for relief was entirely unfounded. "This petition is frivolous, and accordingly, we dismiss this petition," stated the court. It further instructed Modi to donate Rs 1 lakh to Tata Memorial Hospital within four weeks as a penalty for filing the petition.

In summary, the court's decision underscores that private entities like BCCI are not obligated to indemnify individuals for penalties imposed by regulatory bodies like the ED. This case reaffirms legal precedents regarding the non-state status of sports bodies in India.