A bench of Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud issued notice to the Centre asking it to file a response within eight weeks after which it will hear the matter again.
Senior advocate Shanti Bhushan, appearing for petitioner Kamlesh Verma, a Delhi resident, alleged that Sarma was facing graft charges in the Saradha chit fund scam and had been summoned by CBI in the matter.
The petition has sought a direction to appoint a committee of administrators, as done by the top court in the case of BCCI in 2016, to ensure smooth functioning of BAI.
It has also sought the court's direction to supersede other office-bearers of BAI with immediate effect and call for relevant records pertaining to sports body's financial transactions ever since Sarma took charge as its President.
Sarma, Assam's finance minister and a prominent BJP leader in the region, was appointed BAI President on April 23 last year after its then President Akhilesh Das Gupta died during his tenure.
"At present, BAI is headed by a person (Sarma) who is an active politician from the ruling party in the Centre. He is not only Member of Legislative Assembly but also a Minister in the State Government of Assam and holding other important posts in the Party. As far as the Petitioner knows, he has never been a badminton player at any level and thus, he has no connection whatsoever with the sport of badminton.
It said the appointment of Sarma as the President of BAI and also his continuance was "in violation of Rule of Law and completely arbitrary, and therefore, in violation of Article 14 of the Constitution."
The petition sought an ex-parte order for appointment of a Committee to look after all the affairs of the BAI for the welfare of the players, transparent financial management and good administration.
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