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Supreme Court curtails BCCI's financial powers

Independent auditor to monitor BCCI's financial transactions, BCCI given two weeks to implement Lodha reforms

Policy Pulse
Publish Date: Oct 21 2016 1:56PM | Updated Date: Oct 21 2016 1:59PM

Supreme Court curtails BCCI's financial powers

The Apex Court has again come hard on Board of Control for Cricket in India (BCCI) by blocking the funds to state associations and giving the board two weeks time to implement Lodha reforms.


The apex court has also appointed an independent auditor to monitor the financial transactions of BCCI and set a threshold beyond which the board will have to take permission from the Lodha Panel. The auditor and Lodha panel to work together oversee the contracts entered into by the BCCI. This may impact the Indian Premier League and other major advertising agreements.


The apex court also directed the BCCI to file an affidavit within two weeks on how will the Lodha recommendations be completed. Moreover, SC has also asked the BCCI president Anurag Thakur to appear before the Lodha panel.


The Supreme Court has also given power to the Lodha panel to oversee financial transactions beyond the accepted threshold. The threshold will be set by the auditor and Lodha Panel. State associations would not be given any funds till they comply with the Lodha reforms.


A copy of the Supreme Court order has to be sent to the International Cricket Council to make them aware of the sanctions on the BCCI.


In its hearing on October 7, the top court also barred the BCCI from releasing any funds to its state affiliates until they give an unconditional undertaking that they will comply with the organisational reforms as recommended by the committee.


Pronouncing the order, the Supreme Court had said that the state associations would not get funds unless a resolution is passed to implement the reforms.


The Supreme Court also asked Thakur to file a personal affidavit on details of his conversation with ICC CEO Richardson regarding the Lodha panel recommendations.


Thakur had made contact with the ICC with regards to the inclusion of a Comptroller & Auditor General (CAG) member in the newly-formed apex council of BCCI. According to ICC regulations, national boards must not have government interference in its administrative body. A transgression in this regard could lead to de-recognition of member boards.