The Enforcement Directorate(ED) on Tuesday registered a case against the Indian Premier League (IPL) teams under the Foreign Exchange Management Act (FEMA) to conduct an open inquiry into transfer of foreign funds, reports Hindustan Times.
The case was registered under Section 3 of FEMA, which prohibits dealing in foreign exchange without permission from the RBI.
So far the ED was conducting a discreet inquiry, which doesn't require the registering of a case. ED sources told HT that the decision to register a case was taken after it found strong indications of funds hav- ing come from tax havens like Mauritius and Cayman Islands.
The ED has already sought assistance from Mauritius to help trace funds transferred by IPL franchises.
“We have not named anybody in the case as the probe will involve many people,“ an ED officer said, requesting anonymity. “If we find a person is involved [in illegal transfer of funds from foreign countries to an IPL team] we will add his/her name to the case and issue a show cause notice.“
The agency is also investigat- ing payments made to different people associated with the IPL by IPL chief Lalit Modi's broth- er-in-law Suresh Chellaram in the last four months. Chellaram has a stake in Rajasthan Royals.
The agency's main focus will remain on one of the two Union ministers who have made an investment in a south India-based team, as reported by HT on Monday.
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