There will be a thorough probe into the funding of the country’s most popular cricket event — the Indian Premier League T20 (IPL) — and no guilty party will be spared, the government announced today.
“I can assure the members that all aspects of the IPL, including its source of funding, from where the funds were routed, how they have been invested etc are being looked into,” Finance Minister Pranab Mukherjee told the Lok Sabha, after leaders cutting across party lines expressed their anguish and concern over the running of IPL.
“Appropriate action as per the law will be taken. No guilty person or wrongdoer will be spared,” Mukherjee said.
Mukherjee said an investigation has already been launched into the IPL affair by the “concerned department”.
The announcement came a day after Minister of State for External Affairs Shashi Tharoor resigned from the council of ministers, amid allegations that he used his office to secure sweat equity in IPL's Kochi franchisee for his close associate, Sunanda Pushkar. Tharoor denied any wrongdoing.
As the Finance Minister tried to assure the house of the government's intent of clearing the mess in the IPL, the income tax department sent a notice to the Board of Control for Cricket in India (BCCI), the apex governing body for the sport in the country. The notice raised 10 questions relating to the alleged irregularities in the financing of the IPL, but details of the notice were not available. BCCI has been asked to respond by April 23.
An official in the finance ministry said the I-T department has sought to know from BCCI details of the owners of IPL teams, their balance sheets, income earned during the tournaments and the money paid to players.
“The tax exemption given to the BCCI as a charitable institution was withdrawn in November 2009 and the organisation will be taxed on income from tournaments and related activities,” he said, adding the investigation may continue for six-seven months. The official spoke on condition of anonymity.
| ACTION TODAY # Opposition demands JPC probe; government dithers # Finance Minister Pranab Mukherjee said all aspects of IPL will be examined; no wrongdoer would be spared # Income Tax Department sends notice to BCCI with 10 questions on owners of IPL teams, their balance sheets and income earned # IPL Commissioner Modi Tweets: “Lots in media - speculations. Welcome all investigation - ready to extend all cooperation” |
In a related development, Corporate Affairs Minister Salman Khurshid said his ministry will see if there is a case for the ministry's intervention.
“There is no inquiry at the moment. We are gathering general information for more clarity in the matter”, Khurshid said.
On the doubts expressed over the legal position relating to the issue of sweat equity to Pushkar, the minister said one needs more clarity on the status of such an agreement. “Have they issued the equity? Or is it only an agreement? As of today, this ministry has found nothing to get involved with the matter,” he added.
Not content with the government action, many opposition parliamentarians today demanded setting up of a joint parliamentary committee (JPC) to investigate the whole issue.
“The root of the issue is laundering of black money, white washing of black money," Communist Party of India leader Gurudas Dasgupta said in the Lok Sabha. "The issue is also the aberration happening under the nose of the ministry of finance and the government of India. The passion for cricket is being exploited to make money.”
Similar sentiments were expressed by Lalu Prasad of Rashtriya Janata Dal, Mulayam Singh Yadav of Samajwadi Party and Sharad Yadav of Janata Dal (United).
Prasad alleged IPL has become a home for betting and financial scams.
“People are bringing money from Swiss banks and other dubious sources to IPL to turn it into white. Let the sports ministry take over IPL.”
Mulayam Singh Yadav went a step ahead and demanded a ban on "this foreign game”. "We should promote indigenous sports events,” he added.
The main opposition Bharatiya Janata Party's deputy leader in the Lok Sabha, Gopinath Munde, took this opportunity to attack the Congress and Nationalist Congress Party-led government in Maharashtra. “The Maharashtra government has presented a deficit budget but it has given tax rebate to IPL. Why this tournament has not been taxed by the state government? The Maharashtra government had banned bar girls but is now promoting women as cheer leaders,” Munde said.
Government floor managers, however, told the Business Standard that the government is not keen to set up a JPC and will do everything to deflect this demand. “Appropriate and capable agencies are looking into the issue, let them do their job,” a UPA floor manager said.
In one section of the Congress party, however, there are apprehensions on how far a coalition government can move in this direction.
“The IPL is not just cricket, it involves big business houses, powerful politicians among others”, a senior Congress leader said.
But the party managers are hopeful that at least in the lower level management of the IPL, things will become better.
“Action against Shashi Tharoor will also serve as a wake-up call to many others involved in the IPL. The Finance Minister’s statement today makes it clear that our government wants to bring accountability not only within the party but in the IPL hierarchy as well. It will not stop with just Tharoor’s removal,” another senior Congress leader told the Business Standard.
Meanwhile, in a statement issued today, IPL commissioner Lalit Modi dismissed allegations made in a front page article of a business newspaper that charged him with betting and money laundering.
The charges on betting and laundering were "absolutely baseless, ill founded and motivated," he said.
