Facilitation fee in BCCI coffers

The Board of Control for Cricket in India has resolved the telecast issue of the IPL and as reported by DNA, Multi Screen Media will continue to hold the rights. After a thorough debate on the $1.6 billion telecast deal with MSM, the IPL governing council here on Friday has told MSM Singapore that the so-called facilitation fee of Rs425 crore, which it had agreed to pay to World Sports Group, Mauritius, belonged to the BCCI.

In a prompt response, MSM not only agreed to pay the money to the BCCI but also stated that it has initiated legal proceedings against the WSG to recover Rs125 crore it has already paid towards the facilitation fee. As per the deal, MSM was to pay Rs300 crore over eight installments over a period of seven years.

“In light of the new facts, MSM has cancelled all future payment demands that WSG may make and has initiated legal action in India with a view to claiming the payments so far made of Rs125 crores. A suit for recovery of monies already paid to WSG and for suitable declarations has been filed in the High Court of Bombay,” MSM stated.

“On becoming aware of the facilitation fee matter, the BCCI contended that this money belonged to the Board and should have been part of the rights fee. BCCI had also informed MSM Satellite (Singapore) Pte Ltd that this was improper payment. MSM Satellite agreed to pay the said amount to BCCI as part of the Rights Fees,” BCCI secretary N Srinivasan said in a statement. The Board officials, however, are not forthcoming about their position on WSG.

On other issues, the IPL Governing Council has decided not to make any payments for Lalit Modi’s stay in Four Seasons Hotel which is said to be around Rs1.2 crores and his ground transportation claims which is about Rs45 lakh.

The council members, apprised of the allegations against Modi, have approved the ‘secretary’s right’ to refer the matter to the general body. Modi has been stating that Srinivasan’s decision to reject his reply to the three showcause notices is null and void.

Among other decisions, the GC has decided not to let Kings XI Punjab sell its team. Sources said permission will not be granted to the franchises till the inquiries by the government agencies are complete.

Another notable decision was to ask Chennai Super Kings and Rajasthan Royals to return the Rs 13 crore each compensation paid to them for the cancellation of CL T20 in 2008. Meanwhile, Farooq Abdullah, a GC member said, Modi committed ‘major irregularities’ during his days in office.