Modi asked to appear before Indian government agency

India's Enforcement Directorate, a specialised financial investigation agency of the state government, has issued a notice to former IPL chairman Lalit Modi asking him to appear before them within three weeks. The notice reportedly pertains to an investigation of dubious transactions when the IPL broadcast rights were awarded in 2009.

The notice is understood to be related to the process by which broadcast rights were awarded to Multi Screen Media, the owners of Max. The ED has been investigating a facilitation fee of Rs 112.5 crore, which was paid by MSM Singapore to World Sports Group Mauritius within hours of terminating the contract and re-entering into it by Modi, on behalf of the BCCI, on March 14 and 15.

In January 2008, World Sports Group India was granted global television rights for the IPL between 2008 and 2017, while Multi Screen Media Satellite (Singapore) pte Ltd got the rights to telecast the matches in the Indian subcontinent between 2008 and 2012. On March 14, 2009, the BCCI terminated its agreement with MSM on account of various "breaches", including its failure to promote BIG TV, a ground sponsor. That left the Indian TV rights without a holder.

On March 15, 2009, WSG Mauritius, which had the same directors as WSG India, was granted the global and Indian broadcast rights for the IPL between 2009 and 2017. A fresh agreement with WSG Mauritius was entered into, under which WSG Mauritius had 72 hours to find a broadcast partner failing which the rights would revert to the BCCI. It was also expected that WSG would pay the BCCI Rs 112.5 crores as a signing fee.

When WSG Mauritius failed to get a partner, it was agreed that the rights would revert to the BCCI, but WSG India would retain the global rights (excluding the Indian subcontinent) till 2017. It meant the Indian rights were still without an owner.

According to a complaint filed by the BCCI against Modi, the board never received the signing fee of Rs 112.5 crore. Moreover, MSM and WSG Mauritius allegedly cut a deal while the India rights were parked with WSG so that once WSG let go of the rights, MSM could get them back.

For this, the BCCI contended, MSM paid WSG an $80million [Rs 425 crore] facilitation fee - a fee the board says they should have got instead. The board believed that WSG's failure to honour the 72-hour clause, which effectively ensured it lost the rights, was only a mechanism for parking the rights till MSM came on board. The BCCI also contended that all this was done with the knowledge and active participation of Modi.

Since Modi has been based in London since 2010, the ED officials in Mumbai handed over the notice to his counsel Mehmood Abdi. Once the lawyer reportedly informed the officials he was not authorised to accept it, the ED officials emailed the notice to Modi. If Modi fails to show up in three weeks, a non-bailable arrest warrant or a red-corner notice may be issued again him.