ipl scams

IPL scamsCompiled by AatishHasmukhMiteshSureshShivansh Kunal

Introduction IPL a total package containing cricket and entertainment

organized by BCCI.

Brainchild of Mr. Lalit Modi, Former President IPL.

DLF secured exclusive rights for IPL title sponsorship at Rs. 200

Cr. For 5 years.

Professional T20 cricket league created and promoted by BCCI

backed by ICC

Ranked 22nd as the most innovative product launched(FORBES)

Brand value estimated to be around $4.13 billion.

Achievements Emergence of Brand India.

Emergence of a business within cricket, thus generating more scope for business.

Better opportunity for Indian players to showcase themselves, which was earlier limited to only 11 players.

Boost for Advertising industry by IPL alone Rs.300 Crores

BCCI charges N.Modi with 5 scams.

Controversies With Team Kochi

Franchisee owner : Kochi Cricket Pvt. Ltd.

Ownership issues : Names of 25% of the stakeholders not

specified.

Modi alleged of pressuring the consortium members to

abandon their bid in favor of another city in different state.

Internal conflicts over ownership.

Named as : Indi Commandos Kerela

Old Shareholding Pattern

Rendezvous Sports World (26%)

Parinee Developers (26%)

Anchor Earth (27%)

Film Waves (12%)

Anand Shyam (8%)

Vivek Venugopal (1%)

New Shareholding Pattern

Anchor Earth (31.4%)

Parinee Developers (30.6%)

Film Waves Combine (13.5%)

Anand Shyam (9.5%)

Vivek Venugopal (5%)

Rendezvous Sports World (10%)

Strategic timeout Its relates to Timeouts introduced by Modi in IPL2.

In IPL 2, 600 seconds of extra time were introduced as strategic timeouts.

Strangely for rest of world rights, contract did not include these 600 secs.

BCCI alleges Modi caused loss of revenue worth Rs 29 crores to Board.

Media rights MSM, holds the telecast rights for the IPL which it bagged for $1.02 billion

for 10 years in 2008.

Deal later scrapped by the BCCI, which renegotiated with MSM for a nine-year deal for $1.63 billion.

Tax detectives are focusing on a “facilitation fee” of $80 million which MSM paid the Mauritius arm of World Sports Group, the marketing agency of the IPL.

Fee was paid to WSG to give up its broadcast rights for the Indian subcontinent, thus paving the way for the BCCI and MSM to enter into a direct deal.

The suspicion is that the money was routed back to India to be paid as kickbacks to top people associated with the IPL

Security van scam.• IPL awards contract to Visual Impact headed by Ajay Verma.

• Contract is to supply 3 vans at Rs 5 crores.

• Contract further said 4 more vans to be provided over next 7 years.

• BCCI claims Modi did not follow due process while awarding contract.

• BCCI claims Modi hired IPL security vans at 3 times their market

value.

SCAM 5:- An amount of Rs 76 crore and 22 lakh through

sale of hospitality tickets for the final (on April 25), the third place tie (held on April 24) and the two semifinals (all held in Mumbai) is unaccounted for.

Only 30,000 tickets for the final have been accounted for while the stadium (D Y Patil Stadium) was packed to capacity as everyone had seen and it can hold 52,000 people. Over 20,000 tickets are unaccounted for.

Other Financial irregularities

• The Income Tax department has received financial details of more than Rs 150 crore in overseas accounts from some tax haven countries of "non- residents" who invested in the IPL. 

• There is an intricate share holding and investments pattern in the various franchises which have routed the money in the IPL through tax havens and sending money in companies there.

• The bid documents reveal huge funding by NRIs in various IPL franchises. But the documents do not reflect the entire financial details of these individuals.