PROJECT REPORT ON ipl

PROJECT REPORT ON

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)

1

CORPORATE SCAMS:

INDIAN PREMIER LEAGUE

(IPL)

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

2

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

3

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)

4

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

5

COMPANY PROFILE

Employer Name: Unitell India

Employer Address: Address: B 61, 2Nd Floor Kalkaji New Delhi 110019 Delhi.

Email: [email protected]

URL: http://www.unitellindia.com/

Phone: 011 – 26424509

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

Job Location: Delhi   

Head office: Gurgaon

Regional office: Kalkaji

6

CHAPTER-1

INDIAN PREMIER LEAGUE (IPL) SCAM

INTRODUCTION LALIT MODI

7

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

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

8

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.

INTRODUCTION OF INDIAN PREMIER LEAGUE (IPL)

9

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

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

10

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.

Television Rights

11

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 free-

to-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.

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.

12

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

13

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

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.

14

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.

15

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

Team Sponsorship Deal for Team India with Sahara group for 4 years - $103

million (415 Crores) on 20.12.05.

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.

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.

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

24.01.08.

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

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

16

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

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

Renegotiated with Sony WSG the IPL Media rights from $1.26 billion to over

$2.46 billion on 25.3.2009.

Nimbus Communications four year deal for the rights to India's home

international games - US$431 million in October 2009.

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

November 2009.

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

January 2010.

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.

INDIAN PREMIER LEAGUE (IPL) STORY

17

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.

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?

18

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.

ROLE OF POLITICAN IN IPL SCAM

19

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

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.

20

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. 

21

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.

22

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.

23

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. 

24

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

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.

25

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 3,000-

Rs 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

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.”

26

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.

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 Super-

Kings. 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

27

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.

Attempting and encouraging collusive bidding.

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

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

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.

28

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.

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.

29

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-the-

party-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

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

bearers.”

30

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.

31

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.

32

BIBLIOGRAPHY

www.goggle.com

www.wikipedia.com

www.ipl.com

33

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 Excellent

(80%

and above

Very Good

(70-79%)

Good

(60-69%)

Average

(50-59%)

Poor

(Below

50%)

1 Extent of conceptual reading and

Clarity

2 Comprehension of the project

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

34

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

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?

35

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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.

__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Date :

Name :

Designation: ________________________________________________________

Company: __________________________________________________________

Tel No. : ____________________________________________________________

36

Fax No. : ___________________________________________________________

Email : _____________________________________________________________

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

Company seal

37