Project Report On Ipl

PROJECT REPORT ON

CORPORATE SCAMS: INDIAN PREMIER LEAGUE (IPL)

Submitted in partial fulfilment of requirement of PGDM

PGDM-II A BATCH -2010-12

Submitted To:

Submitted By:

Miss. ADITI MIDHA

SORABH GUPTA

(INTERNAL MENTOR)

ROLL No-55

Mrs. SUJATA GANGULY (EXTERNAL MENTOR)

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Student Undertaking

I, Sorabh Gupta Student of PGDM, have been undertaking that this is my original work and have never been submitted elsewhere. All the work and surveys are done by me in the guidance of Mrs.Sujata Ganguly and Miss. Aditi Midha.

Project Guides:

(Student’s name)

Internal Mentor: Miss. Aditi Midha External mentor: Mrs. Sujata Ganguly

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CONTENT • Acknowledgment • Certificate From Organization • Company Profile • Chapter-1 ➢ Indian Premier League • Introduction Of Lalit Modi

✔

Early Life

✔ Family ✔ Education Business Career • Introduction Of IPL • Modi Entertainment Networks

• BCCI • Indian Premier League Story • Role Of Parliament In IPL Scam • How Govt. Is Effected • Tharoor Role In Parliament

• Companies Involved • Lalit Modi To Quit And Resign As IPL Chief

• Fake Tickets And Black Marketing • Charge Sheet Against LaLit Modi • What Next For Modi • Conclusion • Bibliography

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Acknowledgement I express my sincerest gratitude and thanks to hon’ble Mrs. Sujata Ganguly for whose kindness I had the opportunity to work under her brilliant untiring guidance. I could complete the project being undertaken on the “IPL AND SCAM” successfully in time. Her meticulous attention and invaluable suggestions have helped me in simplifying the problem involved in the work. I would also like to thanks the overwhelming support of all the people who gave me an opportunity to learn and gain knowledge about the various aspects of the industry. I would like to thanks Miss. Aditi Midha JIMS kalkaji (New Delhi) for her constant enthusiastic encouragement and valuable suggestions without which this project would not been successfully completed.

(SORABH GUPTA)

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Certificate from the Organization

TO WHOMESOEVER IT MAY CONCERN

This is to certify that Mr. Sorabh Gupta PGDM has successfully completed Mentorship Program for a period of …………………… weeks from ………………………. To…………………. with Unitell. As per our assessment he is hard working and his performance has been excellent during the training program. We wish him all the success for his future.

Signature (Mrs. Sujata Ganguly) Designation

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COMPANY PROFILE Employer Name: Employer Address: Email: URL: Phone:

Unitell India Address: B 61, 2Nd Floor Kalkaji New Delhi 110019 Delhi. [email protected] http://www.unitellindia.com/ 011 – 26424509

Required Education: Job Location:

UG - Any Graduate - Any Specialization, Graduation Not Required PG Any PG Course - Any Specialization, Post Graduation Not Required Delhi

Head office:

Gurgaon

Regional office:

Kalkaji

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CHAPTER-1

INDIAN PREMIER LEAGUE (IPL) SCAM

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INTRODUCTION LALIT MODI Lalit Kumar Modi, born November 29, 1963, Delhi, India) is the former architect of the Indian Premier League. Best known for his stint as the Chairman and Commissioner of the Indian Premier League and the Chairman of the Champions League, between 2008 and 2010, he has also occupied the roles of Vice President of the Board of Control for Cricket in India (BCCI), between 2005 and September 2010, and Vice President of the Punjab Cricket Association. Lalit Modi is also the President and Managing Director of Modi Enterprises and the Executive Director of Godfrey Phillips India. Lalit Modi is also the President and Managing Director of Modi Enterprises and the Executive Director of Godfrey Phillips India.

Early life Lalit Modi was born into a wealthy and successful business family. His father Krishan Kumar Modi is Chairman of Modi Enterprises, a Rs40 billion business empire, which was founded by his grandfather, Raj Bahadur Gujarmal Modi, who also founded the town of Modinagar.

Family Lalit Modi is married to Minal, whom he met while studying in the USA. Modi has 8

three children, Karima, Ruchir and Aliya. Ruchir lives in Mumbai and studies at the American School of Bombay. Aliya currently studies in Switzerland. Karima, who is Minal’s daughter from a previous marriage, is married and currently living in London. Karima has a daughter named Arya.

Education Lalit Modi joined Bishop Cotton School in Shimla, Asia's first boarding school, in 1971. Modi is noted to have been a brilliant sportsman and used to play a number of sports, including cricket. He also attended St Joseph's College in Nainital. Having scored well in the SAT, he chose to skip the school-leaving examinations, which were required for entrance to colleges and universities in India, and travelled to the United States to continue with his studies, where he studied Electrical Engineering and Business Administration at Pace University and Duke University, between 1983 and 1986.

Business career Modi is the President and Managing Director of Modi Enterprises, an industrial conglomerate created and run by his family. Modi has been the Executive Director of Godfrey Phillips India since 1992, one of India's largest tobacco companies. The company is jointly promoted by the Modi Enterprises and Philip Morris International.

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INTRODUCTION OF INDIAN PREMIER LEAGUE (IPL) The Indian Premier League, created by the Board of Control for Cricket in India (BCCI) on September 14, 2007 and sanctioned by the International Cricket Council (ICC), is a Twenty20 cricket competition. Indian premier league is considered to be one of the finest 20-20 game in the world of Cricket. Based on the lines of the English Premier League (EPL) and the National Basketball League (NBA), the IPL is said to be the brainchild of BCCI vice-president Lalit Modi and is modelled along the lines of club football in Europe, which is unlike anything cricket has known in the past.The idea was first floated in 1996 but was shot down as the board felt it would go against the zonal system of domestic cricket. .

The project moved into top gear when the Zee group launched a rival Indian Cricket League on similar lines in April 2007. The best players from around the world will not play according to their nationality but as per the market forces. Later some politicians and prominent individuals found the scope of this process and initiated IPL.

The 46-year-old Modi created the IPL, the most lucrative event in the history of Indian entertainment. The Board earned a profit of around Rs 300 crore each of the three seasons of the IPL. But it turned out to be a Pyrrhic victory. It is a very valuable 10

product and has taken Indian cricket to a very high level. Billions of dollars being transacted in this event and every cricket lover loved this event. Lots of money is involved in IPL with big corporates investing in this product. Lalit Modi has done a great job to bring IPL to this level.

In 2008, Lalit Modi was instrumental in launching the Indian Premier League (IPL), a league based around Twenty20 cricket, where each team is limited to batting for a maximum of 20 overs. He also engineered the Indian Premier League's move to South Africa in 2009 after the dates of the tournament clashed with the Indian general election and the Union Minister of Home Affairs, P. Chidambaram, could not commit to the security of the tournament.

The IPL has since grown into one of the world's biggest sports, worth over US$4 billion. The commercial success of the Indian Premier League and Modi's control of the league has led to him being compared to Don King and Bernie Ecclestone.

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Television Rights On January 14, 2008, it was announced that a consortium consisting of India's Sony Television network and Singapore-based World Sports Group secured the rights of the Indian Premier League. The record deal is for ten years at a cost of US$1.026 billion. As part of the deal, the consortium will pay the BCCI US$918 million for the telecast rights and US$108 million for the promotion of the tournament. The BCCI announced that the bulk of the profit from this deal would initially go to the IPL franchises themselves, gradually reducing this amount over the duration of the contract. Network Ten has purchased the rights to show every game live in Australia on freeto-air television for the next five years at a cost of AU$10 - $15 million.

Title Sponsorship Rights Indian real estate developer DLF Universal secured exclusive rights to the Indian Premier League title sponsorship worth INR 200 crore (over US$50 million) for five years. 12

Who are the franchisees? The franchisees will own the eight teams in the fray. They can run them in their own styles, bring their own sponsors and even name the team according to their choice. They will even be free to list their teams on the stock exchange.

Franchise owner and price paid i.

Bangalore - Vijay Mallya/UB group - USD 111.6 million.

ii. Chennai Super Kings - India Cements - USD 91 million. iii. Delhi DareDevils - GMR group - USD 84 million. iv. Hyderabad - Deccan Chronicle - USD 107 million. v. Jaipur - Emerging Media (Manoj Badale, Lachlan Murdoch, Suresh Chellaram

and investors) - USD 67 million. vi. Kolkata - Shah Rukh Khan's Red Chillies Entertainment in partnership with

Juhi Chawla and Jay Mehta - USD 75.09 million. vii. Mohali - Preity Zinta, Ness Wadia (Bombay Dyeing), Karan Paul (Apeejay

Surendera Group) and Dabur's Mohit Burman - USD 76 million. viii.Mumbai - Mumbai Mukesh Ambani's Reliance Industries Ltd. - USD 111.9

million

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Modi Entertainment Networks Modi started a 10-year joint venture with Walt Disney Pictures in 1993, called Modi Entertainment Networks (MEN), to broadcast some of Disney's content in India, including Fashion TV. In 1994, he became the pan-India distributor of ESPN on a ten-year contract worth $975 million. His job was to collect money from the cable companies in India in exchange for them broadcasting ESPN. The deal, gave ESS exclusive global commercial rights for all T20 Champions League seasons until 2017, making it the highest cricket tournament by value on a per game basis. Apart from ESS, bids were received from Abu Dhabi Sports Club and Dubai International Capital (DIC). While the DIC bid was for $751.3 million, Abu Dhabi Sports Club’s bid, being a conditional one, was disqualified. ESS had bid $900 million for the deal and an additional $75 million for marketing. Of the deal, ESS Managing Director, Manu Sawhney said: “This deal will cement our relationship with BCCI, Cricket Australia and Cricket South Africa and we are committed to setting new benchmarks in broadcast and distribution.” Lalit Modi, who was IPL chairman and commissioner at the time, said: “We believe this is the best commercial deal for Champions League.” In 2008 ESPN, paid almost US$1 billion for the global rights to the Twenty20 Champions League, in a ten year deal. Lalit 14

Modi called it: “The best commercial deal for the inaugural Champions League Twenty20 season and for cricket fans across the world.” On 24th January 2008 The Indian Premier League announced the new owners of eight franchises. The base price of the auction was set at US$400 million, but the final auction total reached US$723.59 million. Mumbai was the most expensive team, costing US$111.9 million.

In October 2009, Nimbus Communications paid US$431 million for the rights to India's home international games for four years, which commenced in April 2010. Although the deal didn’t include internet or radio rights, Lalit Modi indicated the deal was: "The highest price ever that will be paid per match by a broadcaster to any national board." Pune and Kochi were unveiled on 21st March 2010 as the two new franchises for the fourth edition of the Indian Premier League. Pune was bought by Sahara Adventure Sports Group for US$370 million and the Kochi franchise was bought by Rendezvous Sports World Limited for $333.3 million. The auction fetched a total US$723.59 million.

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Board of Control for Cricket in India In 2004, Lalit Modi ran for President of Rajasthan Cricket Association and won, which entitled him to a seat on the Board of Control for Cricket in India. In 2005, Modi figured in a power struggle that resulted in Sharad Pawar, an influential politician and national cabinet minister, ousting former Indian cricket supremo and International Cricket Council Chief, Jagmohan Dalmiya, in the Board of Control for Cricket in India elections. Modi was then appointed Vice-President of the BCCI.

During his time at the BCCI, Lalit Modi concluded the following deals: ∗

Pan-India distributor deal with ESPN on a ten-year contract - $975 million in 1994

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Team Sponsorship Deal for Team India with Sahara group for 4 years - $103 million (415 Crores) on 20.12.05.

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Team Apparel Sponsor Deal for Team India with Nike for 4 year - $53 million (215 Crores) on 24.12.05.

∗

Media Rights Deal with Nimbus for 4 years - $612 million on 18.2.06.

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Media Rights for overseas matches with Zee for 4 years - $219 million on 7.4.06.

∗

BCCI Sponsorship Deal with WSG - $46 million (173 Crores) on 27.8.07.

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The Indian Premier League sold eight franchises - US$723.59 million on 24.01.08.

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ESPN deal for Twenty20 global rights - US$1 billion in 2008.

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IPL Media Rights Deal with Sony - $1.26 Billion on 15.1.08.

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Web Media Rights to Live current Media - $50 million on 18.4.08.

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IPL Title sponsorship and Ground sponsors - $220 million in March 2008.

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Renegotiated with Sony WSG the IPL Media rights from $1.26 billion to over $2.46 billion on 25.3.2009.

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Nimbus Communications four year deal for the rights to India's home international games - US$431 million in October 2009.

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IPL Theatrical Rights Deal with UFO and ESD for over 300 Crores on 12 November 2009.

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IPL Entertainment Broadcast deal with Viacom for over $30 Million on 23 January 2010.

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IPL undisclosed sum deal with Google and YouTube on 22 January 2010.

∗

Pune and Kochi deal with Sahara Adventure Sports Group and Rendezvous Sports World Limited - US$723.59 million - US$723.59 million on 21st March 2010. 17

INDIAN PREMIER LEAGUE (IPL) STORY IPL is a very valuable product and has taken Indian cricket to a very high level. Billions of dollars being transacted in this event and every cricket lover loved this event. Lots of money is involved in IPL with big corporate investing in this product. Lalit Modi has done a great job to bring IPL to this level. IPL being an event which involves lot of money with no transparency now leaves lots of un-answered questions in the mind of every cricket lover. What is the amount of money received from the sponsors and other events are not made known to the public. After these allegations and controversies, many facts are coming out. Many things are proved yet, but the allegations sounds worrying. Many politicians involved, unknown stake holders, some sweat equity stake holders, betting, match fixing, money laundering, scams, etc. Modi was even alleged to have offered US$ 50 million to the Kochi franchisee to go back and give the Franchisee to Ahmadabad. As normal citizens, we just know the IPL Scam is now the top headlines of most of the Indian newspapers and the news makers in different television channel.

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There are many questions in a common person’s mind regarding IPL? 1. How does the IPL Franchisees make money? 2. How much Lalit Modi does earns from IPL? 3. Why is the demand for Franchisee when the current IPL Franchisee says that

they are losing money? 4. Who are the real owners of these IPL teams? 5. What are the money involved in these matches and who all are making the

real money? 6. Is there any kind of betting or match fixing? 7. How are politicians involved in IPL? 8. Is there any tax benefit for IPL team owners?

There is lot of questions which came in my mind of people and I am sure many of us also don’t know the real numbers as answers. It’s not small money; US$ 3 billion is the money behind IPL which is raised from the Franchisee.

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ROLE OF POLITICAN IN IPL SCAM The main reason for the lack of investigations is of course that, as in virtually all scams (not just in India), politicians are so deeply involved that few officials would dare start inquiries. And most of the Indian media does not begin to investigate until it is fed information. The controversy over Minister of State for External Affairs Shashi Tharoor's alleged involvement in the IPL franchise business stalled Parliament proceedings with angry opposition members demanding an explanation from the minister, who denied any wrong doing. Recent happening with IPL is very unfortunate which started with bidding for the Kochi Franchisee and further tweeting by Lalit Modi the Big Boss of IPL regarding the stake holders of the Kochi Franchisee. The Sweat equity issued to Sunanda Pushkar who is a close associate of Shashi Tharoor. There is also a story comes out of both of them. She is a business woman based in Dubai, basically and Indian from Kashmir. Due to this it led to the resignation of Shashi Tharoor from his Minister post. An explanation from Shashi Tharoor was not 20

convincing to the UPA leaders including the Prime Minister and was asked to quit. .The reason all feel that Shashi Tharoor did a mistake is not that he took a kick back for this deal, but while holding a Minister post, he should not have got involved when a sweat equity (shares paid for some kind of hard work) was given to his known friend. As per his explanation, he did it for his state and his love for cricket which is something acceptable.

It’s very natural that he got into trouble because, it’s always been like this and shows that he is very new to Indian Politics and don’t know how to take kick backs. He is a very accepted leader but he did not know Indian politics and the dirty games involved. So it is impossible to confirm what the real deal was unless a fair investigation is done. He also spoke in the parliament giving some clarifications and also informed that he has requested the Prime Minister to do an investigation so that he can get things cleared and let the country know about his involvement in this Bid. Bharatiya Janata Party (BJP) politicians are deeply involved. Lalit Modi has close links with Vasundhara Raje, the BJP’s former Rajasthan chief minister, which are now being challenged on the fringe of the IPL story by Congress politicians. Modi faced tax and other charges after Raje lost power last year. He has sought help from Narendra Modi (no relation), the BJP chief minister of Gujarat. Adani is based in Gujarat and Lalit Modi reportedly wanted it to win the Kochi bid that was secured by Tharoor’s Kochi team. Kochi was allegedly offered a $50m bribe to back off by Lalit Modi (who has denied the charge), so that Adani could take over.

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How is the government affected? The scandal has sparked tensions between the ruling Congress party and a key ally, the Nationalist Congress Party, who’s Chief Sharad Pawar, president-elect of the International Cricket Council, is seen as close to Modi. A junior foreign minister resigned following allegations of improper influence and his war of words on micro-blogging site Twitter with Modi was “the last straw on the camel’s back”, Amin told NDTV. The opposition has demanded a probe into the IPL, with some lawmakers demanding the state take over the BCCI and the IPL. Finance minister Pranab Mukherjee has told parliament an investigation has been launched into “all aspects of IPL”, including its source of funding, from where the funds were obtained, and how they have been invested.

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Tharoor's roles stall in Parliament The controversy over Minister of State for External Affairs Shashi Tharoor's alleged involvement in the IPL franchise business stalled Parliament proceedings with angry Opposition members demanding an explanation from the minister, who denied any wrong doing. Parliament had witnessed uproarious scenes when Opposition parties cornered the Government over the April 6, Dantewada massacre. Tharoor, who came to make a statement in the Lok Sabha at noon, was unable to speak due to the din by Opposition members. He laid a copy of his statement in the house while Home Minister P Chidambaram did so on his behalf in the Rajya Sabha. Earlier, as the Lok Sabha resumed at 1100 hrs on Friday, Opposition members rose to demand an explanation from Tharoor, who is alleged to have misused his official position to help his friend Sunanda Pushkar get sweat equity worth Rs 70 crore in the IPL Kochi franchise. Amid noisy protests by Bharatiya Janata Party (BJP) MPs, Parliamentary Affairs Minister Pawan Kumar Bansal said in the Lok Sabha: "The members are raising a particular issue that the concerned minister will be asked to make the statement after the question hour. He will give his personal explanation in the house. With the protesting MPs demanding suspension of the question, Speaker Meira Kumar first tried to let this proceed as Health Minister Ghulam Nabi Azad was replying to questions. However, with the MPs refusing to quieted, the speaker was forced to adjourn the house till noon. When the house reassembled, the protests continued and unable to read out his statement, Tharoor laid it on the table of the house, even as opposition members advanced to the speaker's podium. The house was then adjourned in the evening.

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Companies involved Anyone looking at some of the leading businessmen and companies involved in the IPL would surely have noted long ago that virtually all of them are at the wrong end of India’s corporate respectability spectrum. There is Vijay Mallya of United Spirits and the Kingfisher beer and airline businesses, infrastructure operator GMR that has grown miraculously fast in recent years and grabbed massive land holdings along with airport franchises in Delhi and Hyderabad, and the secretive Subrata Roy of the Sahara group that is famous for its chit (small savings) fund and real estate activities. Also owning a team is Mukesh Ambani of Reliance Industries (RIL) who has been a strong Modi supporter from the beginning of the league. Those trying to win teams this year include commodity trader Adani, which has been in legal trouble over non-payment of customs dues and monopolising coal imports, and the Videocon electrical white goods and oil exploration company run by Venugopal Dhoot. Lalit Modi comes from the Delhi-based Modi family business group headed by his father, K.K.Modi. Lalit Modi was not regarded as a success until he started the IPL, and his earlier business ventures include a controversial lottery franchise in the north-eastern state of Manipur.

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Lalit Modi to quit and resign as IPL chief IPL chief Lalit Modi is likely to resign after he returns from Dubai. While interim chairman of IPL Chirayu Amin was appointed as the new chairman, Rajiv Shukla replaced Modi as the vice-president from Central Zone. In an announcement after BCCI’s Annual General Meeting (AGM), the Board said the IPL Governing Council was overhauled and while Arun Jaitley and Ravi Shastri were retained; Anurag Thakur, Ajay Shirke and Ranjib Biswal were the new inclusions. The Board president has been authorised to nominate one cricketer of repute. Former cricketer Sunil Gavaskar and Punjab Cricket Association president Inderjit Singh Bindra, were dropped from the IPL Governing Council. The Board’s general body also issued show cause notices to team owners of Rajasthan Royals and Kings XI Punjab for irregularities and for breach of terms and conditions of the franchise agreement. A notice was also sent to the Kochi franchise to incorporate their joint venture within 10 days or face action from BCCI. The AGM made sure to put an end to Modi’s reign after he was suspended as the IPL chairman due to allegations of financial irregularities in the cash rich T20 league. Modi reportedly took the decision to step down after Union minister and ICC incoming president Sharad Pawar withdrew support to him. He reportedly explained to Modi that he is in a “difficult situation” over the controversy. He would be the next person after Shashi Tharoor to resign. He will have to resign for the authorities of Commissioner and Chairman of the Indian Premier League. The income tax department and the enforcement directorate are investigating the 25

funds for IPL team owners. The investigating officials will check whether necessary shareholder approvals have been taken are not..?. Already the investigation process for IPL funds has been started by the related departments. In this investigation, the details of sources for funds in all the aspects will be out and appropriate action will be taken as per the law. In 2007, Modi made an advance tax payment of Rs 19 lakhs. In 2008, during the first IPL, the advance tax was upto Rs 2.5 crore. In 2009, when IPL was shifted to South Africa, Modi paid Rs 32 lakh as advance tax. In 2010, the advance tax was upto Rs 11 crore.

Fake Tickets or Black Marketing Of Tickets Troubles seem to be hitting the Indian Premier League (IPL) from all sides. Even as the investigating agencies look into the murky financial dealings in IPL, black marketers and touts are having a field day, selling tickets for the finals for Rs 3,000Rs 2 lakh. The black marketers have even started selling fake tickets in hotels, at railway stations and colonies near the stadium. The tickets for the finals, to be held on April 25 at the D Y Patil Stadium in Navi Mumbai, are officially priced at Rs 500, Rs 5,000 and Rs 10,000. Sources told Business Standard the black market was flourishing: “There has been a mad rush. A ticket of Rs 500 is now being sold at Rs 3,000-7,000. Similarly, a Rs 5,000 ticket is going for Rs 45,000-70,000 and Rs 10,000 tickets are being sold for as much as Rs 80,000-2 lakh.” Even the complimentary tickets are being sold at as much as Rs 60,000-1.50 lakh. Police sources admitted they had received complaints about black marketing of tickets. However, no official complaint had so far been lodged. Police sources also admitted, given that the priority was to ensure there was no untoward incident in the finals, they had not been able to pay much attention to the complaints. “The police are currently concentrating on the law-and-order situation,” admitted a source. The situation has become so difficult that even politicians are unable to get tickets. A Congress legislator, who was willing to pay up to Rs 10 lakh for a few tickets, was not been able to get any. The legislator, on condition of anonymity, said: “The state government should step in to stop this illegal sale. Ideally, the sale of tickets would 26

have been divided into online and over the counter in a 50:50 ratio. Genuine cricket lovers are simply barred from enjoying the game at the stadium.” An Opposition legislator, who landed up with a fake ticket for the semi-finals between Mumbai Indians and Royal Challengers Bangalore, said: “I paid Rs 20,000 for an Rs 10,000 ticket. But, when I reached the stadium, I was told the ticket was fake. I could not do much, as it would have only landed me in trouble.”

Charge sheet against Lalit Modi Known as the world’s ‘hottest’ sports league, the IPL is no longer a sophisticated version of an all-boys cricket club, nor is it just about the entertaining game of cricket. The IPL sparked debate when it began commercializing the brand value of individual players across the globe so that their value multiplied many times over through auctions. It kept the players happy and the sponsors and obviously, the cricket fans across the world. Thus, the IPL became a glam celebration of sports and entertainment with even stars from bollywood donning their thinking plus cricketing caps to buy teams. Who would have believed that this phenomenon called the IPL would shake the Congress Party’s political credibility to the extent that one of its most famous Ministers had to exit? Lalit Modi, the IPL Chairman, who created the IPL phenomenon, is now totally suspended from participating in the IPL or BCCI related activities or committees. The interim chief of IPL has been named: Chirayu Amin. The charge sheet against Modi has several charges on it but the suspension is for six months. He cannot take part in the affairs of the Board of Control for Cricket in India including the IPL and any other committee of the BCCI. From the playing field to representing the personalized fiefdoms of tycoons, this new format has proved to be as much a success as has been the sizzling scandals it continues to be embroiled in.

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One of the damaging allegations has been that Governing Council had no knowledge about Modi’s 80 million dollar ‘facilitation fee’ regarding the telecast rights for the IPL that was paid by Multi-Screen Media (MSM) to the World Sports Group (WSG). More Interestingly, the income tax officials, who are investigating this, have reasons to believe there is much more in tax that is due for this enormous commission. On 25th April, an email was sent to Modi, suspending him with 22 charges of impropriety, just a few seconds after the IPL 3 had been won by the Chennai SuperKings. Modi raised this as an issue with NDTV immediately after, asking, “Are they so scared of me attending the meeting?” At the closing ceremony, Lalit Modi asserted that all deals had been with the approval of the governing council. He reiterated that the IPL is clean and transparent.

There are 22 charges that were put forward by the BCCI and some important ones are: •

Misappropriation of funds.

•

Unrecorded facilitation fee about which BCCI was not informed at all.

•

Irregularities in awarding Internet and broadcast rights.

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Attempting and encouraging collusive bidding.

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Non-disclosure of stakes/interest in teams such as Kings XI, KKR and RR.

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Rigging bids in aborted round of bidding for two new teams.

•

Breaching confidentiality clause such as tweeting about the Kochi – IPL shareholders’ details on Twitter.

Financial impropriety is the most relevant charge against Lalit Modi, particularly as the BCCI has charged him with not informing them about the facilitation fee and about stakes in other teams. Whatever the outcome may be, it is clear that many political bigwigs have been part of the money laundering game in the IPL. The allegations will mean nothing unless there is a fair and unbiased investigation. Resignations alone will not suffice, if we do not know the truth about what is really going on in the name of IPL and the game of 28

sport. This also raises the question about how personal and vested involvements by Ministers spark corrupt practices and if so, what should the custodians of justice do to address it. The chargesheet against Modi is just the beginning as the law will take its course. The ice has begun to crack a little. What follows may be shocking.

MPs call RBI Governor in IPL 'scam' A parliamentary panel looking into irregularities in the Indian Premier League (IPL) sporting extravaganza today decided to call Reserve Bank Governor D Subbarao to depose before the committee. The members were not satisfied with the replies given by RBI Deputy Governor Shyamala Gopinath on issues regarding involvement of banks in the IPL irregularities, especially remittances of foreign exchange, sources said after a meeting of the Parliamentary Standing Committee on Finance here. The committee, comprising members of the Lok Sabha and Rajya Sabha, met under the chairmanship of former Finance Minister and senior BJP leader Yashwant Sinha and questioned Gopinath on the role of the central bank and commercial banks with regard to the transfer of funds to the Board for Control of Cricket in India (BCCI) and IPL franchisees, owners of the high-profile Twenty-20 cricket teams. The committee is also believed to have discussed issues relating to violation of provisions of Company Law by IPL franchisees. The date for the next meeting, sources said, would be decided later. The meeting was called to discuss "foreign exchange and remittance-related offences and connected issues concerning IPL/BCCI." In its meeting on July 14, the panel had sought details from the government on investigations into the alleged tax evasion by the BCCI and IPL franchisees. The alleged evasion of service tax for marketing and brand-building by IPL franchisees was also discussed in the previous meeting. 29

Different wings of the Finance Ministry have been probing the IPL's affairs ever since a controversy erupted in April over the annual money-spinning cricket tournament, which has a fair amount of glamour and entertainment. The row and the face-off between former Union Minister Shashi Tharoor and suspended IPL Commissioner Lalit Modi led to the government ordering enquiries by different departments into the affairs of the IPL and the teams owned by business houses and film stars.

What are the most serious charges that the BCCI has slapped on him? A. That he rigged the auction bidding for two new teams (Kochi and Pune), and

attempted collusive bidding. B. That he committed wide-ranging financial violations. C. That he holds benami (disguised) stakes in three teams.

D. That he failed to disclose his direct or indirect interests in Rajasthan Royals, King’s XI Punjab and Kolkata Knight Riders. E. That he tried to intimidate the new Kochi franchise owners into surrendering it. F. That he got an indirect $80 million kickback while renegotiating TV broadcast

rights with Sony after IPL 1. Also, that the broadcast deal was not passed by the IPL’s governing council and has only Modi’s signature. There are other banal allegations of ‘indiscipline’ and arcane Acting-against-theparty-interest variety of charges that politicians usually face while being expelled. “Of all the charges, the most serious is Modi receiving kickbacks for the TV deal,” says a leading Supreme Court lawyer under condition of anonymity, “If the money trail can be traced to Modi, and shown that it was used to finance his private jet, he’s in for trouble. What could also implicate him are telephone tappings and evidence of forged documents, etcetera, if any. Other accusations involve procedural matters that pertain to the manner in which the BCCI functions. As for wide-ranging financial irregularities, the BCCI’s own finances will come under 30

thorough scrutiny, which may not be good news for several past and present office bearers.”

What next for Modi? Modi, who is credited with almost single-handedly turning the fledgling league into a $4.1 billion enterprise and bestowing the Indian board with enormous economic clout, denies any wrong doing. Modi tweeted on Monday: “I am still chairman of IPL. Just suspended. Wait - we have just begun”. Modi could file a reply to the BCCI and wait for the board’s decision, or he could approach a court in Mumbai or Chennai, where the BCCI is registered, to have the suspension order lifted, local papers say. If the board does not lift the suspension, Modi could seek the support of other board members to be reinstated at the annual general meeting in September, local papers say.

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CONCLUSION The Government of India has decided to probe the IPL transactions and the details of the income and bring the details to the public domain. The finance minister has assured the citizens of India that he will make sure that everything in and out of IPL will be thoroughly investigated and the culprits will be punished. The investigation be fair, surely it has to be, because the media is done better investigations and information passed to the public. Lalit Modi has reported to have some criminal charges in the past and they are sure that he is not a very clean person. He will not work so hard to take IPL to such big height unless he has good personal earnings. He is already under the scanner, his credit card transactions being scanned, his phone tapped, etc. Finance minister Pranab Mukherjee told Parliament in New Delhi that “all aspects” of the competition will be investigated including how more than $3bn raised from franchise sales and television rights have been invested.

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BIBLIOGRAPHY

•

www.goggle.com

•

www.wikipedia.com

• www.ipl.com

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Project Report (FEEDBACK ON program) (To be filled up by the External mentor / Departmental Head)

Name of the Student: Sorabh Gupta Roll No. : 55 Project Title: Indian Premier League (IPL)

PLEASE TICK THE APPROPRIATE BOX S.No

Parameter

Excell ent (80% and above

1

Extent of conceptual reading and Clarity

2

Comprehension of the project

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Very Good (7079%)

Good (6069%)

Avera ge (5059%)

Poor (Belo w 50%)

3

Seriousness, sincerity & thoroughness in planning before the study started.

4

Sense of responsibility and Commitment

5

Time and quality orientation

6

Initiative, drive and enthusiasm

7

Communication effectiveness and keeping the superiors informed about the progress

8

Prevention of mistakes and seeking guidance from the experienced persons

9

Acceptance of mistakes

10

Depth of study in relation to the scope Envisaged

11

Quality of analysis and diagnosis, Depth & breadth

12

Practicality or recommendation Vis-àvis purpose of the study

13

Behavior and conduct

14

Discipline, punctuality and regularity

15

Quality of reporting and presentation 35

02. Is the report useful to company

:

Yes ________ No ___________

03. Would you implement it

:

Yes ________ No ___________

04. If yes, to what extent and in what respect can you implement it? ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ____________________________________________

05. If no, can you please specify the reasons for it? ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ _________________________________

06. Any weaknesses observed which he / she needs to correct and the institute should pay attention. ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ _________________________________

07. Any aspect on which he/ she should pay more attention to be more professional and effective. ___________________________________________________________________ ___________________________________________________________________ 36

___________________________________________________________________ _________________________________

Date

:

Name : Designation: ________________________________________________________

Company: __________________________________________________________

Tel No. : ____________________________________________________________ Fax No. : ___________________________________________________________

Email : _____________________________________________________________

(Signature of the Project Guide / Departmental Head with Date)

Company seal

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