THE Indian Parliamentary Committee has asked the Government to thoroughly investigate violations committed by BCCI and other specified IPL franchisees relating to investments made by IPL franchise, which have been routed from outside India through entities located in countries such as Mauritis, Bahamas, British Virgin Island etc. without the permission of RBI or the Income Tax Department for opening and operating foreign currency account in South Africa.

The committee has raised questions on the tax exemptions granted to the ICC even though the World Cup receives huge sponsorships and is patronized by the corporate sector in a big way. The committee also raised eyebrows at Rs 45 crore tax exemption granted to International Cricket Council (ICC) from the recenly concluded World Cup and said that exempting international sporting events from tax is unjustified and devoid of merit.

While answering a query in the Lok Sabha, the Sports Minister, Mr Ajay Maken, said that the Directorate of Enforcement has informed that based on the investigations conducted so far they have issued 19 Show Cause Notices for various FEMA contraventions involving amounts aggregating to Rs 1077.43 crore. The Committee has also asked for investigations relating to suspected Foreign Exchange Management Act violation relating to ownership of the IPL Franchises, nature of the foreign investment and valuation of shares and transfer thereof in respect of some franchiese to be expedited and brought to their logical end within a period of six months from the presentation of the Report and the action taken submitted to the Committee.