SC stumps BCCI, chokes fund flow to state bodies

Says approval must be sought from Lodha panel for all high-value contracts, orders independent audit

The Supreme Court on Friday curbed the financial powers of the Board of Control for Cricket (BCCI) for not complying with the Lodha panel’s recommendations.

The Supreme Court ruled that all transactions between the BCCI and state cricket bodies would be frozen until they implemented the panel’s recommendations.

The judgment also asked the Lodha panel to set a ceiling for contracts the BCCI could enter into beyond which it would require the panel's approval.

It asked the panel to appoint an independent auditor to scrutinise the BCCI's accounts and set financial limits for contracts.

The court asked BCCI President Anurag Thakur and Secretary Ajay Shirke to file compliance reports before the panel and the Supreme Court in two weeks.

Speaking to Business Standard, Shirke said, "I have not received a copy of the order and will only be able to comment on the issue once I study the judgment carefully.”

While state cricket bodies said there were no immediate implications for them, many privately admitted they would call emergency meetings to discuss the way forward.

“I don’t see any immediate effect of the order passed today. Since we receive payments (from BCCI) with a lag of two months, the ongoing India-New Zealand one-day series will not be affected,” Biswarup Dey, treasurer, Cricket Association of Bengal (CAB), said. The three one-dayers, scheduled to be played as part of the ongoing series, will be held at Mohali, Ranchi and Vizag.

An functionary of the Mumbai Cricket Association said when contacted, “Even though the apex court appears to be tough on the BCCI, we believe it will not completely stop cricket. If the situation, however, does get worse, it will not be possible for us to run the game.”

According to sources, state cricket bodies in Tripura and Hyderabad have already adopted the Lodha panel recommendations, while others, including in Bengal, Madhya Pradesh, Chhattisgarh and Karnataka, are expected to fall in line. The body in Rajasthan is also in agreement with the Lodha panel recommendations, but since it has been suspended by the BCCI, its actions are not taken into account.

Bodies in defiance include those in Gujarat and Maharashtra.

The big implication of the Supreme Court order is on the fate of ongoing bidding for media rights of the Indian Premier League. Eighteen companies, including STAR, Sony, Reliance Jio, Facebook, Twitter and Amazon, have picked up tender forms for the media rights. Up for grabs are television, Internet and mobile broadcast rights for 2018-2027, whose combined value is estimated to be Rs 30,000 crore. This is five times the value of the television rights given to Sony in 2009.

The BCCI had set October 25 as the last date for submission of bids, which was also the day when the bids were to be opened. In view of the Supreme Court judgment today, however, sources said the final submission could be postponed.

Sources also said the bidding process could be called off and a fresh tender process could be undertaken to comply with the court's directive. Shirke declined comment when specifically quizzed on the matter.