"The dependence of competitors on BCCI for sanctioning of the events and dependence of players and consumers for the same reason has been total. BCCI knowing this had foreclosed the competition by openly declaring that it was not going to sanction any other event," CCI said. The Commission observed that BCCI undermined the moral responsibility of a custodian and defacto regulator. However, it said that BCCI in their submissions have claimed that the funds of IPL have been re-ploughed in developing the game. On account of this, the regulator said that it considers "appropriate that the penalty of six per cent of average annual revenue of BCCI for past three years". Thus, the penalty amount works out to Rs 52.24 crore, which is to be deposited within a period of 90 days from the date of receipt of this order. The complaint against BCCI was referred to the Commission's Director General (DG) in December 2010. DG is the investigating arm of the fair trade regulator. During investigation, BCCI contended that it is a 'not-for profit' society for the promotion of sport of cricket and its activities is outside the purview of the Competition Act, according to the order. Besides, BCCI had submitted that its commitments are neither driven by nor conditional upon commercial considerations. However, the DG concluded that though BCCI is a society and supposed to be a non-profit organisation, "its activities related to IPL such as grant of franchise rights, media rights and other sponsorship rights, where huge revenue is involved, are different from so called non-profit activities. "These activities fall in the commercial sphere and the whole tendering process for such rights is motivated by profits". The DG submitted the report to the Commission in February 2012. According to the regulator, full opportunity was given to both BCCI and the complainant for perusal.
