Mumbai: The Enforcement Directorate (ED), which is probing a money laundering and alleged forex violation case against Indian Premier League (IPL) founder Lalit Modi, has recently sent Letters Rogatory (LRs) to authorities in Singapore and Hong Kong seeking detailed information regarding an alleged money trail that the agency is investigating to trace the ultimate beneficiary,
LRs are formal requests made by a competent court to a foreign court for judicial assistance The ED sent the fresh LRs after failing to receive complete information through earlier communications.
The agency is investigating whether Modi or his close associates were the ultimate beneficiaries of a suspicious financial transaction amounting to Rs 125 crore, which is believed to have been routed through multiple offshore entities. Between 2008 and 2010, Modi was the IPL chief before being sacked by Board of Control for Cricket in India (BCCI) after allegations of financial misconduct linked to alleged proxy ownership of the franchises surfaced. In 2010, shortly after the IPL scam; Modi left India and since then has been living in London.
The case dates back to 2008, when the BCCI awarded global media and broadcast rights for the newly launched IPL to Singapore-based World Sports Group (WSG) in a deal valued at approximately $1.026 billion (about Rs 4,700 crore). Shortly afterward, WSG sublicensed these rights to Multi Screen Media (MSM)—then Sony’s broadcasting arm. This allowed MSM to officially broadcast IPL matches in India and other regions.
However, in 2009 a new deal was later signed between BCCI and a consortium of WSG and MSM, which sparked controversy. A “facilitation fee” of Rs 425 crore was reportedly paid by MSM Singapore to WSG Mauritius, allegedly in contravention of forex regulations. Agency believes that kickbacks or illegal payments may have been involved in this deal and that money was possibly sent abroad through hawala or layered transactions.
The ED is probing that a portion of this money—specifically Rs 125 crore—was siphoned off and rerouted through a series of offshore companies, in violation of Foreign Exchange Management Act (FEMA) and Prevention of Money Laundering Act (PMLA).
In 2010, the BCCI filed an FIR in Chennai regarding the matter. Subsequently, in 2012, the ED issued a show cause notice to the BCCI and several of its former officials, including Modi, for alleged forex violations. The ED also initiated a money laundering investigation based on the FIR.
As part of efforts to track the flow of funds and identify the ultimate beneficiaries, the ED traced portions of the money trail to companies registered in Mauritius. These firms were suspected to be shell entities used to layer and launder the funds received as part of the facilitation fee before being transferred to accounts in Singapore and Hong Kong. The Mauritius entities were meant to obscure the origin and end-use of the funds.
To confirm this, the ED filed a Letter Rogatory with Mauritius in 2016 under international cooperation treaties. Following a Letter Rogatory sent to Mauritius in 2016, the ED received evidence about corporate ownership documents of the entities allegedly used in the transactions, and banking and transaction details, which confirmed the movement of Rs 125 crore. Evidence suggesting that the money was later transferred to accounts in Singapore and Hong Kong, prompting the current round of LRs.
A senior government official stated, “The probe against Modi is stuck for want of information from the concerned countries. Therefore, we have once again written to the jurisdictions where we suspect the funds have been moved. This information will help us complete the money trail.”
As part of its efforts to track the flow of funds and identify the ultimate beneficiaries, the ED has recently sent the LRs to authorities in both Singapore and Hong Kong. ED had previously sent LRs, but it had not received an adequate response. These renewed requests seek banking and corporate records related to entities allegedly involved in the suspect transactions. The agency suspects some of these companies are shell firms used to disguise the actual ownership and facilitate illegal financial transfers.
The ED’s ongoing probe aims to determine whether Lalit Modi or his associates directly benefited from the transaction and whether foreign firms were used to park illicit gains beyond the reach of Indian law enforcement.
The investigation into the IPL broadcast rights deal has remained a crucial part of the larger scrutiny into Lalit Modi’s financial dealings, especially as he continues to remain outside India since 2010. The ED is relying on cooperation from international financial centers such as Singapore and Hong Kong to piece together the suspected money trail and build a watertight case.
Earlier in March, India confirmed that Modi had availed citizenship of Vanuatu and had applied to surrender his passport at the High Commission of India in London. Following which the prime minister of Vanuatu ordered the cancellation of a passport issued by the island nation to the fugitive Indian businessman.According to media reports Modi has challenged the order before the appropriate authority.