The business interests of Lalit Modi’s family in the Indian Premier League (IPL) are not limited to franchises alone.
Documents available with DNA reveal that his relatives also have a huge share in the coveted online, digital and mobile rights to the event.
Interestingly, the rights were transferred to his relatives, including his stepson-in-law Gaurav Burman, through a maze of transactions spanning the globe but routed through tax haven Mauritius.
Modi’s rivals alleged that the key digital and mobile rights to the IPL were passed on to his relatives without the consent of the BCCI at lower than original prices. Modi or his relatives could not be contacted for comments.
The story began in April 2008, when the BCCI and the IPL entered into an agreement with Live Current Media (LCM) Inc, a Nasdaq-listed company, for web rights to the IPL and the Champions League till 2017. LCM was given these rights for a whopping $49 million to be paid in instalments.
In March 2009, the contract was revised downwards. Through a novation agreement (legal document that substitutes an old debt with a new one), the BCCI and IPL agreed to transfer the original contract to Global Cricket Ventures (GCV) Private Ltd, headquartered in Singapore for just $20.75 million, raising several eyebrows.
GCV later entered into a joint venture with a Dubai-based company, Netlink Blue Holdings, which had the mobile and digital rights to the IPL. With this, the web, digital and mobile rights to the events came under a single entity.
Around the same time, another company with the name GCV was floated in Mauritius. On August 20, 2009, the Singapore-based firm assigned the original contract to the new entity for a mere $1.75million.
The BCCI and IPL were, however, not made party to this new agreement, in violation of the original MoU. But GCV claimed that it had given prior notice to the BCCI of its intent to reassign the deal to the Mauritian company.
This is when Modi’s relatives entered the scene. In November 2009, Elephant Capital Investments, through its subsidiary based in Mauritius, picked up a 50% stake in GCV for $10 million. Gaurav Burman, Modi’s stepson-in-law, is a director in Elephant Capital. The company’s managing director, Gaurav’s brother Mohit, is co-owner of Kings XI Punjab.
Signing the agreement with GCV, Gaurav had said, “We believe with the continued success of the T-20 format, the value of these rights will appreciate significantly.”
As reported earlier, Modi’s brother-in-law Suresh Chellaram holds 44% stake in Rajasthan Royals.
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