ED slaps Rs.98.5-crore notice on Rajasthan Royals
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The Enforcement Directorate (ED) has slapped a penalty notice of approximately R100 crore against IPL team Rajasthan Royals for allegedly violating forex laws in its business operations.
The agency, which issued the penalty notice after a two years of investigations under the Foreign Exchange Management Act (FEMA), has sent out three separate notices to the IPL franchise totalling to R98.5 crore plus some other similar notices earlier, sources said.
While a R50 crore penalty has been slapped on Jaipur IPL Cricket Private (JIPL) and its directors, owners of Rajasthan Royals, R34 crore notice for evasion of forex duties has been issued against EM Sporting Holding, Mauritius and its directors.
A fresh notice of R14.5 crore has been issued against ND Investments, United Kingdom and its directors. All the three parties can appeal against this penalty order in the appellate authority of Fema. The order requires the IPL team to pay up in 45 days.
The ED has been investigating financial and foreign exchange irregularities against all the IPL franchises for almost two years now and this is the first big order against any team. The order said the probe agency found that foreign investment in JIPL was made in "flagrant contravention of fema" and the investment was made "much prior to the incorporation of JIPL".