ED demands Red Corner notice against Lalit Modi

Last week, the agency obtained a non bailable warrant against Modi from a special court in Mumbai in connection with a money laundering case.

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Since Modi is based out of UK, the ED is a seeking to obtain a Red Corner notice.

A Red Corner notice is issued for offenders who can be arrested and extradited to the country where they are wanted.

On July 3, the enforcement agency summoned Modi and directed him to appear in person before the ED within 15 days. The deadline for personal appearance expired on July 19.

The ED summons were first served to Modi through his Mumbai solicitors, Wadia Ghandy & Co on July 3. However, the law firm returned it to ED saying that it was not authorised to receive the summons. The enforcement agency on July 7 sent the summons to Modi through email. Later the agency pasted the summons at Modi’s last known office address at Worli in Mumbai. But Modi has maintained that he has not received any summons from ED.

The ED then moved a court to get a on bailable warrant against Modi. The agency is investigation a case under the prevention of money laundering Act or PMLA .

The PMLA case against Modi is based on a criminal complaint filed by the BCCI in 2010, accusing him of misappropriation of funds during his tenure as IPL chief.

The ED has sought details from Modi on his role in the deal between World Sports Group, Mauritius and Multi Screen Media Singapore (MSMS). According to the ED petition, in 2008, BCCI awarded 10-year media rights to WSG India for $ 642 million and MSMS for $276 million for certain geographies.

In March 2009, Modi terminated the contract with MSMS for violating some rules and signed a fresh agreement with WSG Mauritius without following any tender process. The deal was for Rs 4792 crore for 9 years. Later that month, BCCI entered into contracts with MSMS under which the latter would pay the cricket body Rs 3949 crore for match broadcast right. MSMS also signed a contract with WSG Mauritius for a Rs 425 crore facilitation fee, which the BCCI later claimed should come to it.

According to ED, Modi “was not authorised to terminate the media rights contract with …MSMS.” He also didn’t follow any tender process or obtain approval from the IPL governing council for signing the deal with WSG Mauritius.