SC hears how cricket’s funds are siphoned off

Tribune News Service

New Delhi, May 5

The Supreme Court today had a glimpse of just how the officials of India’s cricket bodies siphon off the associations’ funds. First, the counsel of former Goa Ranji Trophy player Hemant Angle revealed the methods adopted by the Goa Cricket Association’s (GCA) office-bearers to misappropriate its funds.

Then senior counsel Manish Tewari — representing former India captain Bishan Singh Bedi and former India all-rounder Kirti Azad —  exposed the malpractices in the Delhi and Districts Cricket Association (DDCA).

Goa case

Angle’s counsel told the Special Bench of Chief Justice T.S. Thakur and FMI Kalifulla that subvention money given by the Indian cricket board (BCCI) to GCA as television subsidy — to the tune of Rs 2.87 crores — was withdrawn by top office-bearers either in cash or through self cheques in 2007.

It was revealed that a bank account was opened in a fraudulent way in April 2007 in the name of GCA, after showing Vinod Phadke as president, Chetan Desai as secretary and Akbar Mulla as treasurer. However, in reality, Dayanand Narvekar was heading GCA, while Desai was its secretary and Phadke the treasurer.

Also, the mandatory GCA resolution to open a bank account was not provided.

In an affidavit, Angle claimed that these fraudulent means were employed in order to siphon off Rs 2.87 crore given by BCCI (ICICI Bank No. 1859) as TV revenues subsidy in 2006. Angle said that big sums of money were withdrawn from this account many times, in cash or through self cheques. The affidavit also says that Suryakant Naik — executive member of GCA — benefitted to the tune of Rs 10,25,000. Naik, incidentally, is a central government employee, and this case is being investigated by the Enforcement Directorate.

Rot in DDCA?

Tewari cited the reports of various agencies that have nailed DDCA for the malpractices in its finances and overall operations. He quoted a report by the Serious Fraud Investigation Office (SFIO), which has indicted DDCA on 62 counts. He also cited the Fact-finding Committee report, prepared by own directors; and the Justice Mukul Mudgal Report, in which he severely criticised DDCA for its governance practices.

Tewari also informed the Bench about the allegations and under-investigation cases of financial mismanagement and defalcation of funds against associations in Jammu and Kashmir, Goa, Delhi and Haryana, etc. All this, he said, provides strong reasons for an outside agency to look into and regulate the affairs of BCCI and its affiliated units.