Mediaboss Marketing

The Enforcement Directorate (ED) is closing in on Board of Control for Cricket in India (BCCI) officials, former IPL commissioner Lalit Modi, Multi Screen Media (MSM), a division of Sony Entertainment, and World Sports Group (WSG) in the Rs 425-crore facilitation fee scam.

The Enforcement Directorate (ED) is closing in on Board of Control for Cricket in India (BCCI) officials, former IPL commissioner Lalit Modi, Multi Screen Media (MSM), a division of Sony Entertainment, and World Sports Group (WSG) in the Rs 425-crore facilitation fee scam.

The scam revolves around the 10-year media rights of IPL matches awarded to WSG, starting 2009. The total contract value was Rs 4,792 crore.

An interim investigation report shows that Lalit Modi, BCCI and WSG fraudulently created an asset of Rs 425 crore outside India under the guise of a facilitation fee.

dna has accessed the interim report of ED.

The report said that there was no agreement at all, and it was all meant to put pressure on MSM to fork out a huge amount as consideration over and above the fee that was to be paid under media rights agreement. "We have done our interim investigation under the Foreign Exchange Management Act (FEMA). On its basis, we will send show-cause notice to all four," a top ED official told dna.

When contacted, Ratnakar Shetty, head of operation, BCCI, replied, "no reaction". An e-mail sent to MSM went unanswered.

Despite repeated summons, Modi has not presented himself at the ED, said one of the officials.

What exactly is the scam? At first, BCCI said it had awarded IPL media rights to WSG. Later, when the rights were awarded to MSM was made to pay Rs 425 crore to WSG for relinquishing its rights. In reality, there was no agreement between BCCI and WSG and WSG had no rights to relinquish either. Lalit Modi might be a beneficiary of the Rs 125 crore already paid by MSM to World Sports Group, Mauritius (WSGM), the ED report said.

How did the scam play out? A new firm called WSG Mauritius was brought into play just to park rights with them. Then, Modi sent certain e-mails to various broadcasters and sponsors, including MSM, saying that BCCI was was barred from signing any new agreement till a certain court verdict was pronounced. Later, in another mail, he said the verdict was been pronounced and BCCI was free to enter into any agreement for media rights. The e-mail also said BCCI just signed a new agreement with WSG.

Read more here:
Enforcement Directorate closes in on Lalit Modi, BCCI in Rs 450-crore IPL scam