BCCI's financial powers clipped
Lodha panel to fix cap on its financias deals as SC chokes funds to state units
The Supreme Court on Friday clipped the powers of the Board of Control for Cricket in India (BCCI) in financial matters, authorising the former Chief Justice Rajendra Mal Lodha-headed panel to appoint an independent auditor to scrutinise the BCCI accounts and fix a limit on its financial transactions beyond which all contracts, including those involving media rights, will require the panel's approval.
It also directed BCCI president Anurag Thakur, BJP MP, and secretary Ajay Shirke to file a compliance report affidavit within two weeks regarding implementation of the cricket reforms suggested by the apex-court appointed panel. Anurag Thakur was also asked to appear
personally at the next hearing on December 5.
The next major contract the BCCI was to sign on October 25 is the broadcast rights for the Indian Premier League (IPL). The Lodha panel will have to decide the BCCI's limit in the next four days to let it sign the broadcasting
contract and step in if the contract exceeds this limit.
The Bench of Chief Justice T S Thakur and Justices D Y Chandrachud and L Nageswara Rao ruled that the apex cricket body will not disburse any funds to its state affiliates until they too undertake to abide with the directions of the court and the recommendations of the Lodha panel. Justice Chandrachud pronounced the order on behalf of the Bench that had reserved its ruling early this week on three petitions filed by BCCI and the Cricket Association of Bihar.
It made it clear that the state cricket associations will not get a "single penny" from the BCCI until they comply with the Justice Lodha panel''s recommendations. The court has thus stuck to its October 7 decision to curb the BCCI's financial powers, particularly with disbursal of money to state associations and entering into any contracts above a certain limit. Instead of fixing the cap itself on the BCCI's powers to spend, it left it up to the Lodha panel to decide it and clear any expenditure beyond this limit.
The order asked the Lodha panel's secretary to send a copy of this order to the International Cricket Council (ICC) chairman Shashank Manohar. Justice (retd) Lodha welcomed the order, saying the SC has done what is thought the best for implementing its July 18 judgment. He reserved further comments after going through the order. It is a follow-up of the October 7 order of the apex court to the BCCI to not disburse Rs 16.73 crore each to 12 state associations, which were supposed to receive the balance payment of their share from the compensation BCCI got for termination of Champions League Twenty20. The CJI had also ordered then that the remaining 13 state associations, who have already received Rs 16.73 crore each, can only use the money after agreeing to implement the Lodha panel-recommended reforms. He had also warned that the money would be invested in the fixed deposit accounts if they continue to defy the Lodha panel''s recommendations. The court had also barred further disbursal of amounts that were passed in the BCCI Annual General Meeting on November 9, 2015 or "any subsequent resolution" by the BCCI or its Working Committee until the state associations submit in writing to unconditionally comply with the Lodha reforms.