India on Tuesday lost the hosting rights of the 2021 men's world boxing championship to Serbia after the International Boxing association alleged non-payment of host fee by the national federation, which claimed that AIBA "acted in haste".
The Boxing Federation of India acknowledged the delay but blamed it on "procedural complications" arising out of the AIBA's failure to resolve "issues" with regards to the account in which the money was to be transferred.
The payment of what is estimated to be USD 4 million was due to be made on December 2 last year.
"After New Delhi didn't fulfill its obligations to pay host fee as mentioned in the Host City Agreement terms, AIBA has terminated the contract. Therefore, India would have to pay a cancellation penalty of USD 500," the AIBA said in a statement.
The elite competition, which would have happened for the first time in the country, will now be held in the Serbian city of Belgrade.
"Serbia has everything to organize a great event for athletes, coaches, officials, and, of course, for our boxing fans," AIBA Interim President Mohamed Moustahsane stated.
More From This Section
The Boxing Federation of India (BFI) is headed by Ajay Singh, who also owns Spicejet Airlines. AIBA has been suspended by the International Olympic Committee (IOC) for financial mismanagement.
"AIBA account in Lausanne was frozen. AIBA intended to have some previous payments through an account in Serbia. As Serbia is in the Grey List of Financial Action Task Force (FATF countries), Indian Banks do not normally send money to Serbia. AIBA could not resolve these issues," read a statement from BFI to PTI.
"...we have reasons to believe that the decision to change the venue of WCH-2021 was taken in haste without due consultation with BFI...the penalty that is imposed is shocking and surprising
"We believe that we will keep planned time-frame and conduct World Championships in 2021 after the Games if the pandemic situation is under control."