IPL SCAM.pptx

IPL SCAM
PRESENTATION BY :
ESHANI DHIR (086)
HARNEET KAUR (091)
NITI SINGLA (115)

Introduction
India is a vast country with diversity galore.
Cricket is a common denominator which has the power of
uniting a country of 130 crore individuals.
Our love for cricket is one that knows no bounds, no caste, no
religion and no discrimination.
The game of cricket has gotten bigger. Now, apart from the
International World Cup and the several Test Series, ODI and T-
20 tournaments, there is also the Indian Premier League, better
known as IPL.

History
IPL was launched in 2008, and became hugely popular all over the country.
. As it is with most events associated with copious amounts of fame and popularity, the IPL too has
generated its share of controversy and scandal.
A lot of that is entwined around the person who introduced IPL in India, LALIT MODI.

About Lalit Modi
Born in Delhi in 1963 in a business family
Completed schooling from Shimla and Nainital, then sent to US to pursue
Electrical Engineering and Business Administration.
Being a troublemaker and willful individual, he was embroiled in controversies in
US.
Later, he was arrested by Police and Charged with Cocaine Trafficking and second-
degree kidnapping.
Smartly playing, he bargained with the Durham Court and reduced his prison
sentence from 2 years to 100 hours of community service in North Carolina.
In 1986, He got permitted to return to India on account of ill health.

About Lalit Modi
Once back, He joined Godfrey Phillips India, and very soon promoted to Executive Director in 1992.
Started his own business – Modi Entertainment Network in 1993.
Company started to facilitate streaming and viewing of international programs and events in India.
He formed strategic partnerships with a number of international entertainment and sports channels,
and started distributing their content in India.
The first major contract that Modi Entertainment Network bagged was a ten-year partnership with
Walt Disney Pictures.

About Lalit Modi
Most partnerships proved to be one time deal only, and companies did not express their desire to renew
the contract.
Reason being, Lalit was not the easiest person to deal with.
. The companies that he tied up with all complained of a lack of transparency in the way that Modi
Entertainment Network conducted its business.
This turned out to be a major deal-breaker, and the apparent success of Lalit’s company was short-lived.
Undeterred by this failure, Lalit set his sights onwards onto the next big opportunity.
This is when he turned to cricket.

The Beginning of Scam
Like any self-respecting Indian, Lalit was extremely aware of the
unequalled passion that this sport-inspired in the hearts of his countrymen.
He was introduced to the concept of Private Sports League like NBA in US.
These leagues are characterised by the presence of private teams which acquire players on a contractual
basis.
The difference is that you don’t just play for your country, you also play for entertainment and to earn
money.
As is obvious from the success of the European football leagues and the American basketball and baseball
leagues, this is a hugely profitable business.

Vision for IPL
. Before the IPL, we only supported one cricket team- The Indian National Cricket Team.
The fact that there could be smaller privately owned teams had not occurred to anyone. Lalit realised that
this was a golden opportunity and he jumped on it.
Win-Win situation as it generates profit for the organisers and the teams, and creates a source of
entertainment for the spectators and all those involved.
Pitched his idea to the Board of Control for Cricket in India (BCCI).
Couldn't convince the board of the genius of his vision and was shot down.
§Didn't give up and took a different route. Now, he decided to obtain an influential role in BCCI itself, as it was
a selective and powerful body.

Rise of Modi as VP of BCCI
Now, he focused his attention on making his dream a reality.
1992
Joined Godfrey Phillips
India
1993
Started Modi
Entertainment Network
1999
Joined Himachal
Pradesh Cricket
Association
2004
Vice President, Punjab
Cricket Association
2004
President, Rajasthan
Cricket Association
2005
Vice President, BCCI

Role as VP
He focused on commercial side of cricket business and took several business decisions for BCCI,
thereby increasing their revenue.
In fact, the three year period between 2005 and 2008 saw a seven-fold increase in revenue.

Grand Launch of IPL
2008 saw the launch of the Indian Premier League and Lalit Modi was the first chairman.
It was immensely popular and a huge success.
The IPL was the new thing in the world of cricket. All the best players wanted to be a part of it, and all
the biggest entrepreneurs wanted a share of the prize.
. From industrialists like Mukesh Ambani and Vijay Mallya to Bollywood superstars like Shah Rukh
Khan and Preity Zinta, they all flocked to this new sporting league.
Before long, IPL was one of the biggest sports leagues in the world and worth over $4 billion.

Fall of Modi and his dream
By 2010, Lalit Modi had been separated from his dream child. Embroiled in
scandals and controversies, he had to leave India and flee to London.
What went wrong?
Where did the controversies start?
Well, as we all know, there is never any smoke without fire.

The SCAM – Nepotism of Modi
As the success of the IPL grew, so did Lalit’s practice of nepotism
{you all know Karan Johar, right? ;) }
It was revealed that Lalit used the growth of the IPL to divert a
number of profitable deals towards his family and friends ,
secretly making them the owners of the teams without any
proper disclosures.
One of the major examples is the ownership of the Rajasthan
Royals. Lalit made sure that the majority stake in this profitable
franchise went to none other than his brother-in-law, Suresh
Chellaram.

Nepotism of Modi
Lalit Modi is also accused of rigging bids when he added two
clauses without permission while inducting two new teams into
the IPL.
These clauses were added to favour -
 Videocon group
 Adani Group

MSM – WSG Facilitation Fee Scam
Lalit was the IPL Commissioner.
While awarding the media rights, the then MSM (Multi Screen Media Limited, now Sony Pictures
Networks India) approached BCCI, to which the latter informed that it had awarded the media rights of
telecasting IPL to World Sports Group (WSG) Mauritius.
If MSM paid a facilitation fee of Rs. 425 crore to WSG, WSG would relinquish its rights.
MSM and WSG Mauritius entered into a contract, and MSM initially paid Rs. 125 crores.
This was paid into an account maintained in Mauritius.
In reality, there was no such enforceable agreement between BCCI and WSG, and the contract was
negotiated by Lalit Modi himself.

Shashi Tharoor and IPL
The other major example was the controversy surrounding the ownership of the
Kochi Tuskers Kerala franchise.
It was supposed to be a new addition to the league in 2010.
The big for this team was won by Rendezvous Sports World, a consortium of investors.
Sunanda Pushkar, who later became the wife of Shashi Tharoor was one of the equity
holders in this consortium.
It was a confidential agreement, though Lalit Modi violated the terms of contract and
tweeted about the details of the transaction to media.
Shashi Tharoor was accused of corruption and misuse of his influence and power as the
Minister of External Affairs for financial gains.
Ultimately, Tharoor was forced to resign from his post.

Doomsday for Mastermind-turned-Fraudster
• Suspended from
position of Chairman
and President, IPL as
well as VP of BCCI
2010
• A suspension notice
and a 34-page letter,
listing 22 charges of
impropriety,
were served.
2010 • BCCI's disciplinary
committee found Lalit
Modi guilty on eight
counts
2013
• A non-bailable arrest
warrant issued
against him on
charges of money
laundering.
2015 • ED penalized Modi &
BCCI with a fine of
Rs.121.56Cr for
violating regulations
transferring money
abroad.
2018

Modi flees India
As the trend goes, "Bye, Bye India!"
Lalit Modi fled from the country to seek asylum in the United Kingdom, stating threats from the
Underworld.
It is said that his political connections helped him escape the country without much of a hassle.
As long as he does not return to India voluntarily, the Indian agencies cannot arrest and extradite him.
Even if he has fled to London, Lalit was still rudely separated from his brainchild, the IPL.

Sushma Swaraj
Controversy
In 2015, Passport of Lalit Modi was
cancelled to stop him from travelling
outside UK.
When Sushma Swaraj became the Minister
of Foreign Minister of India, she lifted this
ban and allowed him to travel outside UK.
Controversies began since Lawyer of Lalit
Modi was the daughter of our hon'ble
Foreign Minister, Bansuri Swaraj.

Unethical Practices
of Modi
Lack of Transparency : Entered into Contracts in his
own name
Financial Irregularities : Charged with Money
Laundering
Nepotism : Undue Advantage to Friends and Family
(Violates Theory of Justice)

The Bottom Line
It requires a lot of knowledge, resources, influence, and strategic planning to pull off any kind of
scam.
Lalit Modi indeed is a smart man with good business acumen but with no ethical values.
Had he put his resources and intelligence to good use, it would have been beneficial to him as well as
the society at large.
Modi is the creator of the IPL, the man who revolutionized cricket in India, the man who could make
it happen. But a creator with bad ethics becomes a destroyer too!

IPL SCAM.pptx

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IPL SCAM.pptx