BCCI recovers facilitation amount, wins ₹850 crore in arbitration against WSG: Report

There are several pending litigations arising from the reign of former Indian Premier League (IPL) commissioner Lalit Modi that are now falling into place. On Monday, July 13, the Board of Control for Cricket in India (BCCI) settled controversial pending litigation from Lalit Modi's reign. According to a report in Hindustan Times, the BCCI won the arbitration against the World Sports Group (WSG) which earned the governing body a total ₹850 crore.

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BCCI wins ₹850 crore in arbitration against WSG

An arbitral panel consisting of Supreme Court Justices (Retd) Sujatha Manohar, Mukunthakam Sharma, and S.S. Nijjar confirmed the closing of the IPL media rights agreement for overseas territories with WSG by the BCCI, on June 28, 2010. This decision will let BCCI appropriate amounts to the tune of ₹850 crore lying in an escrow account. The matter went to adjudication after WSG staked their claim over the profit they would have made if BCCI had not terminated the agreement. WSG also wanted damages, for wrongful cancellation of the agreement. However, the BCCI stuck to its stand that it was a fraud.

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Raghu Raman who represented BCCI said that it has been proved that Lalit Modi in conspiracy with WSG officials cheated, and defrauded the BCCI. The BCCI had ended its agreement (overseas IPL media rights) with WSG in June 2010, over a dispute arising out of ₹425 crore-facilitation fee pay-out. WSG (Mauritius) that won IPL media rights in a famous 3 AM deal with Lalit Modi on 15 March 2009, was unable to find a broadcast partner. MSM (Sony) entered into a facilitation agreement (₹425 crores) with WSG (Mauritius) before they won the IPL media rights for the Indian sub-continent from BCCI.

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The overseas IPL media rights stayed with WSG but on discovering the facilitation agreement, the board called it ‘improper’ and reclaimed the rights. Thereafter, Sony ended the facilitation agreement with WSG (Mauritius) and agreed to pay ₹300 crores to the BCCI, as well as another ₹125 crore after recovery from WSG.

After 10 years since Lalit Modi’s removal, BCCI has recovered the facilitation amount and won the right over ₹850 crore in escrow account. Raman further said that BCCI had raised a complaint in 2010 to Chennai police. He added that now a civil tribunal has stated that it is a fraud conducted by Lalit Modi and some officials of WSG. 

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IMAGE COURTESY: PTI