Contribute to NSDF, Ministry tells BCCI

Tribune News Service

New Delhi, April 20

The Sports Ministry has sought contribution from the BCCI to the National Sports Development Fund (NSDF) from its Indian Premier League (IPL) profits. In a letter to BCCI secretary Anurag Thakur, the Ministry said: "While granting No Objection Certificate (NOC) for the IPL 2015, it was made clear to the BCCI that it was required to contribute to the NSDF." According to the letter, the amount was to be based on either "percentage" of the IPL profits or a "consolidated sum".

After the BCCI granted Rs 50 crore to the NSDF in 2008 for the development of Olympic sports, the Ministry approached the board with a similar request last year. The request drew no response, though.

This time, however, the Ministry is persisting with the demand. When the BCCI approached the Ministry for a NOC for the ongoing season, the Ministry toughened its stand and asked the board for the contribution. While the board may have got the permission to host the IPL this time, the Ministry may refuse to grant the NOC next season in case the board refuses to make the contribution.

According to a board official, the BCCI isn’t happy with the withdrawal of tax exemption for the matches it organises and the non-availability of the details on how the 2008 grant was utilised or disbursed among the athletes. The BCCI had once approached the Ministry to share the break-up of expenditure, but to no avail.

While the Ministry could be blamed for not sharing the details with the BCCI, the board’s argument that it is entitled to tax exemption for hosting matches has infuriated the Ministry officials. “Tax exemption is applicable to such institution which has declared itself a charitable society. Various government agencies have declared that the character of the BCCI has changed since June 1, 2006, when it amended its constitution to change its objectives. The IT department, in an order in 2010-11, called the BCCI a commercial organsiation. Moreover, the authorities concerned see the IPL as a commercial venture. So, they can’t use it as an excuse for no contribution toward NSDF,” said a Ministry official.

The government agencies have often accused the BCCI for evading taxes and hiding details of its commercial activities. When the BCCI had contributed Rs 50 crore to the NSDF, the IT department had charged a certain tax on the amount. The Ministry clarified that the tax was calculated because of the BCCI’s commercial operations.