Nationwide tax raids on IPL franchises

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In a nationwide raid, Income Tax sleuths on Wednesday swooped down on the offices of IPL franchisees Kolkata Knight Riders.

NEW DELHI: In a nationwide raid, Income Tax sleuths on Wednesday swooped down on the offices of IPL franchisees Kolkata Knight Riders, Chennai Super Kings, Deccan Chargers and Kings XI and also on companies handling the broadcast rights of the cash-rich cricket League.

Income Tax authorities broad-based its probe into the alleged financial irregularities in the Indian Premier League surveying offices and looking into documents in tandem with the Enforcement Directorate investigating the routing of funds from tax havens into the three-year-old league. The surveys were continuing.
The searches signalled a tense build-up to the expected showdown between embattled IPL chief Mr Lalit Modi who is under pressure to resign and his detractors in the BCCI ahead of the April 26 meeting of the IPL’s Governing Council. Summons were issued to the BCCI by the Income Tax authorities to furnish complete details of all eight original IPL franchisees.
In Kolkata, a seven-member team of Tax officials surveyed the offices of Bollywood star Sharukh Khan’s Kolkata Knight Riders and Cricket Association of Bengal. There were simultaneous searches on the offices of the Red Chillies Entertainment which owns KKR at the Eden gardens and then on Gameplan, a sports management group which looks after KKR’s affairs on Shakespeare Sarani. In Chennai, Tax sleuths surveyed the office of CSK owned by India Cements. BCCI secretary, Mr N Srinivasan is the vice-chairman and managing director of India Cements.
In Secunderabad, an I-T team visited the office premises of Deccan Chargers Sporting Ventures limited. “Our investigation team was there in the Deccan Chargers office,” an I-T official said. Company officials denied any searches or raids. Income Tax officials also went for a survey of the Kings XI office in Gurgaon, sources said.
In Mumbai, the I-T department searched the premises of companies associated with the IPL in the wake of allegations that telecasting agency Multi Screen Media had paid a facilitation fee of US$ 80 million to marketing agency World Sports Group. The searches were conducted at the office premises of Multi-Screen Media (MSM) in suburban Malad, the telecasting agency of IPL, World Sports Group (WSG), the marketing agency of IPL, International Management Group (IMG), the organising agency, and the Bandra house of Venu Nair, CEO of WSG.