Lalit Modi on backfoot as income tax sleuths enter field

The government on Thursday fired a loud warning shot across the bow of the IPL ship, skippered by Lalit Modi, as income tax officers paid an unexpected visit to the BCCIs office in Mumbai, the first such expedition to the headquarters of Indian cricket by taxmen in 60 years. 

The officers asked for specific documents related to the IPL, including the funding details of the franchisees. Late in the evening they went to Lalit Modis office in Worli in Mumbai and were seeking certain information from the flamboyant but controversial IPL commissioner. 

The fast-paced developments indicated that the ugly spat between Lalit Modi and Shashi Tharoor has not just got the tax department excited, but has also made the ruling establishment in Delhi disgusted with the testosterone-driven display of money and muscle. 

However, agriculture minister and former BCCI chief Sharad Pawar came out in support of Modi, saying there was nothing wrong in disclosing the names of stakeholders to the public and that he was within his rights to seek information about any bid. In an interview to a TV channel, he also said, I am absolutely clear that when Shashank Manohar will have this (governing council) meeting, all misunderstandings will be cleared. Pawar also clarified that Gujarat CM Narendra Modi had no role in the entire episode. 

But that may be only a minor relief for Lalit Modi. Although this visit of I-T sleuths doesnt qualify as a raid, it still assumes significance because of its timing smack in the middle of am escalating controversy over the IPL coffers, ownership pattern of franschisees and the source of their funds. 

It’s said record bids, dodgy source of funding, allegations of underhand dealings in awarding broadcast and marketing rights, lavish parties, have all combined to attract the attention of the tax authorities. A special team has been constituted to track the IPL showbiz. TOI first reported the taxmens heightened interest in IPL on April 14. 

Sources said the scrutiny can also help taxmen access the details of Rendezvous Sports something that can have a bearing on Shashi Tharoors ministerial innings. It is sure to compound matters for Modi whose handling of the dispute with Rendezvous has already attracted adverse attention from several quarters, including the ruling establishment. 

This tax probe can also fan the resentment which is growing among BCCI office bearers against Modi, because many of them now hold Modis aggressive ways responsible for embroiling the BCCI in unseemly and avoidable spats. 

The unease of the establishment with the IPL was evident on Thursday, with sports minister M S Gill demanding a probe into the the glamorous version of limited edition cricket whose phenomental success once promised to turn Modi into an icon of entrepreneurship. 

The success story has been read differently since the controversy broke about his alleged pressure on Rendezvous to abort their effort to own an IPL team. The spiralling spat brought out disturbing details of alleged manipulation of bids, misuse of funds, favouritism and nepotism in the distribution of lucrative business rights. 

Sources in the government said that Thursdays visit by tax officers were only a prelude to a larger scrutiny of the entire IPL business in which many franchisees and vendors as reported by TOI on April 14 are based in tax havens like Mauritius. The on-going probe so far was limited to seeking explanations from the IPL stakeholders. The team which returned with documents and computers are scheduled to visit the IPL office again on Friday. 

Accountability should be there. Democracy applies everywhere. Democracy is like a sunflower which seeks sunshine. 

Therefore all institutions should work accordingly, said Gill. 

A government intervention may not attract resistance from the Opposition, with the allegations of shady dealings eroding any immunity that IPL could have acquired because of its enormous success. On Thursday, BJP MPs, Gopinath Munde and Vinay Katiyar, demanded a probe into the funds. It is only a matter of time when Left also hops on to the bandwagon.