A fortnight after the Enforcement Directorate (ED) responded to its queries on Lalit Modi, the Interpol has sought contracts and documents that form the basis of ED’s request for issuing a Red Corner Notice (RCN) against the former IPL chief on alleged money laundering charges, sources told The Indian Express.
On September 26, the CBI, the nodal agency for interacting with the Interpol, forwarded a letter it received from the global agency to the ED, seeking copies of the agreements between Sony’s Singapore-based subsidiary Multi Screen Media Singapore (MSMS), World Sports Group (WSG) Mauritius and the BCCI, sources said.
ED is in the process of replying to the Interpol and is expecting a final decision by the global agency on the RCN by mid-October, sources said. The RCN, an international lookout notice for a fugitive, can be issued only in the case of a criminal offence.
According to ED, the BCCI awarded 10-year media rights of IPL in 2008 to WSG India for $642 million and MSMS for $276 million for certain territories.
In March 2009, Modi terminated the contract with MSMS, citing alleged rule violations, and signed a fresh agreement with WSG Mauritius allegedly without following any tender process. The nine-year deal was reportedly worth Rs 4,792 crore.
Later that month, the BCCI entered into contracts with MSMS under which the latter would pay the cricket body Rs 3,949 crore for match broadcast rights. MSMS also reportedly signed a contract with WSG Mauritius for a Rs 425-crore facilitation fee, which the BCCI later claimed should come to it.
The ED has said Modi “was not authorised to terminate the media rights contract with .MSMS.” The agency claimed that Modi didn’t follow any tender process or obtain approval from the IPL governing council for signing the deal with WSG Mauritius. The ED has sought details from Modi on his role in the deal between WSG Mauritius and MSMS.
The Interpol, sources said, has also sought information on why both WSG (India) and WSG (Mauritius) are named in the ED investigation. Apart from this, the Interpol has once again asked ED if the present probe against Modi is related to violation of Foreign Exchange Management Act (FEMA) or under the Prevention of Money Laundering Act (PMLA).
So far, the ED has registered 16 cases against Lalit Modi. Of these, 15 are under provisions of FEMA and one under PMLA. The case under PMLA against Modi is based on a criminal complaint filed by the BCCI in 2010, accusing him of misappropriation of funds during his tenure as IPL chief.