26 February,2011 07:41 AM IST | | J Dey
Following the board's failure to submit documents to prove it is the national body, the department has withdrawn its privilege to import sports goods without paying duty
THE Board of Cricket Control in India (BCCI) is no longer the apex body for the game of cricket in the country, at least not for the Central Board of Excise and Customs.
The customs department, which comes under purview of the Ministry of Finance, has decided to withdraw the cricketing board's privilege of importing sports goods and equipment without paying import duty with immediate effect.
A senior customs official told MiD DAY that the decision was taken as the BCCI had failed to comply with the mandatory requirement of submitting documents necessary for annual recognition as a National Sports Federation or the apex body for the game. He said the notification had been issued to all air- and seaports in the country.
A BCCI official said the decision would affect the game and more so because it comes at a time when the World Cup is being co-hosted by India.
The board has been availing tax exemptions running into crores while importing special sports equipment for the players and for maintaining the stadia. Most of the equipment required for the upkeep of the grounds is imported from Europe.
The BCCI official said that, besides the organisation of the World Cup, there are other things that have kept the board busy and contributed to the documents not being submitted.
The board has locked horns with the former IPL commissioner Lalit Modi over violation of foreign exchange norms and several senior officials have been kept busy by the Directorate of Enforcement (ED), which has been questioning them in this regard.
BCCI officials are being questioned on franchise payments being routed through tax havens like Mauritius.
The issue of 33 foreign players being paid more than $17.2 lakh by BCCI-IPL without the permission of the Reserve Bank of India is also being probed.
The Foreign Investment Promotional Board also rejected some applications of deals between Mauritius-based companies and some IPL franchises.
The Other Side
BCCI Chief Administrative Officer Ratnakar Shetty refused to comment on the issue.