Supreme Court Declines Lalit Modi's Plea for BCCI to Cover ₹10.65 Crore FEMA Penalty

The Supreme Court of India on Monday, June 30, 2025, dismissed a plea by former Indian Premier League (IPL) Chairman Lalit Modi, who sought directions for the Board of Control for Cricket in India (BCCI) to indemnify him for a ₹10.65 crore penalty imposed by the Enforcement Directorate (ED) for alleged violations of the Foreign Exchange Management Act (FEMA).

A bench of Justices P. S. Narasimha and R. Mahadevan ruled that while Modi is free to pursue civil remedies as permitted by law, the court would not compel the BCCI to bear the penalty amount.

The penalty stems from alleged financial irregularities that occurred during the 2009 IPL season, which was held in South Africa. Modi had argued that the BCCI was obligated to indemnify him under Rule 34 of its bylaws, which provides for reimbursement of legal expenses or liabilities incurred by officials while discharging their duties.

This Supreme Court decision upholds an earlier ruling by the Bombay High Court on December 19, 2023. The High Court had dismissed Modi's petition as "frivolous and wholly misconceived," imposing a cost of ₹1 lakh on him (which, according to some reports, was directed to be deposited with the Tata Memorial Hospital). The Bombay High Court had clarified that the FEMA penalty was imposed on Modi in his personal capacity, and there was no legal basis to direct the BCCI to pay the fine.

Both the High Court and the Supreme Court observed that the BCCI does not fall under the definition of a "State" as per Article 12 of the Constitution. Therefore, a writ petition under Article 226 cannot be issued against it in matters that do not involve the discharge of any public function, such as the alleged indemnification in this case.