On Monday, July 13, the Indian Cricket Board (BCCI) put to rest one controversial pending litigation from the reign of former IPL commissioner Lalit Modi. The BCCI won the arbitration against the World Sports Group (WSG), earning them INR 850 crore.
An arbitral tribunal consisting of Supreme Court Justices (Retd) Sujatha Manohar, Mukunthakam Sharma, and S.S. Nijjar upheld the termination of the IPL media rights agreement for overseas territories with WSG by the BCCI, on June 28, 2010.
This ruling will let BCCI appropriate funds to the tune of 850 crore rupees lying in an escrow account. The matter went to arbitration, after WSG staked claim over the profit they would have made if BCCI did not cancel the agreement. They also wanted damages, for wrongful termination of the agreement. BCCI stuck to its stand that it was a fraud.
“It has been proved that Lalit Modi in conspiracy with WSG officials cheated, and defrauded the BCCI,” senior counsel, Raghu Raman, who represented the BCCI said.
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The BCCI had terminated its agreement (IPL overseas media rights) with WSG in June 2010, over a dispute arising out of Rs 425 crore-facilitation fee pay-out.
WSG (Mauritius) that won IPL media rights in a famous 3 am deal with the then IPL commissioner Modi on 15 March 2009, was unable to find a broadcast partner. MSM (Sony) entered into a facilitation agreement (R425 crores) with WSG (Mauritius) before they won the IPL media rights for the Indian sub-continent from BCCI.
The overseas rights stayed with WSG but on discovering the facilitation agreement, the board called it ‘improper’ and reclaimed the rights.
This led to Sony terminating their facilitation agreement with WSG (Mauritius) and agreed to pay Rs300 crores to the BCCI, as well as another Rs125 crore after recovery from WSG.
“BCCI had raised a complaint in 2010 to Chennai police. Now a civil tribunal has held that it is a fraud conducted by Lalit Modi and some officials of WSG,” Raman said.
Speaking to IANS, a former BCCI official said that the verdict vindicates the stand of the BCCI. "It is relevant that the Award has accepted the case of BCCI that Lalit Modi was guilty of concealing the agreements that had been entered into and also the defaults committed by WSG Mauritius, from the then office bearers," he said.
(hindustantimes.com inputs)
