ED Slapped 98.5 Crore Rupees Penalty Notice on Rajasthan Royals

The Enforcement Directorate (ED) slapped the IPL team Rajasthan Royals with a penalty notice of around 100 crore Rupees for violating the Forex laws. ED issued this penalty notice after investigating the matter for 2 years under the Foreign Exchange Management Act (FEMA). Three notices in all were sent across to the IPL franchise which totaled to 98.5 crore Rupees.

The Jaipur IPL Cricket Private Limited (JIPL) as well as its directors was sent a penalty notice of 50 crore Rupees. Apart from this, 34 crore Rupees penalty notice was issued against EM Sporting Holding, Mauritius and its directors for evading the Forex duties. A notice of 14.5 crore Rupees was also issued additionally against the Ms ND Investments, United Kingdom and its directors.

All these three parties are free to appeal against the penalty order in appellate authority of FEMA. According to the order, IPL team needs to make the payment in 45 days.

This is said to be the first biggest order against any team issued by the ED. According to the penalty order, it was found that the foreign investment in JIPL was conducted in flagrant contravention of FEMA.

The first penalty order was issued by ED against the Rajasthan Royals in mid-2011. Now, it issued the final orders after it moved to FEMA Adjudicating Authority in Delhi in order to examine investigations in the case.