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Defiant state associations face funding cuts
- Updated: October 7, 2016
The Supreme Court has told the BCCI to stop issuing funds to state associations that will not comply with the Lodha Committee’s recommendations. It told the board that no further money should be given unless the state association passes a resolution to implement the recommendations and submits an affidavit before the court.
In an interim order issued on Friday, the court also said that funds disbursed by the BCCI to certain state associations after the board’s annual general meeting in November 2015, should go into a fixed-term deposit until further directions.
On Thursday, the court was told by amicus curiae Gopal Subramanium that the BCCI had disbursed “substantial sums” to state associations before putting in place a disbursement policy, which was one of the recommendations the board had to adopt by the September 30 deadline. Subramanium said the action was in defiance of the Lodha Committee’s directives.
Kapil Sibal, the lawyer representing the BCCI, had said in his client’s defence that the disbursement was an “ordinary and routine matter” and not “forbidden” by the Lodha Committee. The interim order said Sibal had revealed to the court that the BCCI had got INR 2500 crore as compensation from the broadcaster on account of termination of the Champion League Twenty20, which was discontinued last year.
Sibal had told the court that about INR 1500 crore went towards taxes and other liabilities, leaving BCCI with a net amount of Rs.1036.78 crore. “He submitted that in terms of a decision taken in the AGM held on 09.11.2015, 70% of balance amount of Rs.718.24 crores was to be disbursed to 25 Associations in the country @ Rs.28.73 crores per Association,” the order said. A sum of Rs.12 crores out of the said amount was released to each one of the Associations pursuant to the said resolution leaving the balance amount of Rs.16.73 crores unpaid.”
Subramanium contended that the disbursement of such large amounts was not a routine matter and was done on an “ad-hoc basis” with the intention to “appease and possible induce” the board …