'Truth has finally won': Lalit Modi plans India return after major tribunal relief

A tribunal under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act (SAFEMA) on Tuesday set aside most of the Enforcement Directorate's (ED) findings and penalties linked to alleged violations of the Foreign Exchange Management Act (FEMA), handing Modi significant relief.

'What I said for 16 years has been proven right'

Reacting to the verdict, Modi said the ruling vindicated his stand after a legal battle spanning over 16 years.

"I'm really happy with the verdict. For 16 years, I have fought, and whatever I have been saying to the media and everybody has finally emerged as the truth," Modi said in a video accessed by ANI.

Calling the IPL his foremost concern, he said his decisions were always taken in the best interests of the tournament.

"I was only concerned with the well-being of the IPL. That chapter is now behind me, and I'm looking forward to coming back to India," he added.

Modi said he plans to return to India either at the end of this year or early next year, after the birth of his grandson in October.

Tribunal gives major relief in FEMA case

The tribunal, headed by Justice Munishwar Nath Bhandari and member Rajesh Malhotra, partly allowed appeals challenging the ED's 2018 order that had imposed penalties on the BCCI, Lalit Modi, former BCCI president N. Srinivasan, M.P. Pandove, the State Bank of India and its former Chief Manager A.K. Nazeer Khan.

The ED had alleged that the BCCI violated FEMA provisions by transferring funds to South Africa after the 2009 IPL season was shifted there because of the Lok Sabha elections.

Most penalties quashed, BCCI fine reduced

The tribunal struck down most of the ED's findings but upheld two violations by the BCCI.

It retained the penalty relating to remitting an amount higher than what was reflected in the board's books of accounts and for delays in repatriating ticket sale proceeds to India. However, it reduced the financial penalty from ₹4 crore to ₹1 crore.

Importantly, the tribunal set aside the penalty imposed on Lalit Modi over the delayed repatriation of funds, noting that he had already been suspended as IPL commissioner by the time the money was brought back to India and was no longer responsible for the process.

In its 105-page order, the tribunal observed that "the penalty imposed on Lalit Modi is wholly erroneous" and deserved to be set aside.

'Vindication of due process'

In a separate statement, Modi described the verdict as more than a personal victory.

"For over sixteen years I have consistently maintained one simple position: I acted in good faith, in the best interests of Indian cricket and the IPL, and committed no personal wrongdoing," he said.

He added that the judgment reaffirmed the importance of due process and demonstrated that allegations must ultimately be tested against evidence and the law.

The 2009 IPL was relocated to South Africa after security concerns arose due to its overlap with the general elections in India.

The ED had alleged that the transfer of funds abroad for organising the tournament violated foreign exchange regulations, a contention that has now been largely rejected by the tribunal.