SC bars State cricket associations from using BCCI funds

A Bench led by Chief Justice of India TS Thakur, on Friday, passed an order to block the payment of Rs. 16.73 crore each to 12 State cricket associations who are yet to receive their share from the Rs. 2,500 crore that the BCCI earned as compensation on account of cancellation of the Champions League T20 tournament.

The Bench decided that all 25 State cricket associations will be prevented from accessing the BCCI's funds until they implement the changes recommended by the Lodha Committee in “letter and spirit”.

The 13 State cricket associations who have already received the compensation money can use it only after making the necessary changes to their administration processes. The Supreme Court also decided to put the funds of non-complying State associations in fixed deposit accounts until they change their minds.

In a strong statement, the Supreme Court has said that the BCCI is “grossly out of order and may even constitute contempt”.

Chief Justice Thakur further added, “BCCI could and indeed ought to have avoided the disbursement of such a huge amount while Justice Lodha Committee was still examining the need for formulating a Disbursement Policy.

“The sequence of events that have taken place since July 18, 2016 and referred to in the status report (of the Lodha Committee) prima facie give an impression that BCCI has far from lending its fullest cooperation to the Committee adopted an obstructionist and at times a defiant attitude which the Committee has taken note of and described as an impediment undermining not only the Committee but even the dignity of this court.”

However, the BCCI, who come under the reach of the Tamil Nadu Societies Registration Act, are in a fix at the moment. The cricket board needs to hold an SGM to get the necessary support from its State units, but the Tamil Nadu Societies Registration Act is making it hard for them to do so.

“For the BCCI to get the State associations to agree to all of the recommendations, a special general meeting will have to be convened. And as per the Tamil Nadu Societies Registration Act, a resolution implementing all the recommendations would have to be passed by a two-thirds majority. This is highly unlikely to happen,” an unnamed source told The Hindu newspaper.

Most of the State associations are against implementing the Lodha panel’s recommendations and, reportedly, willing to wait until the Supreme Court passes an order before deciding on their next course of action.

The Supreme Court has, however, given an ultimatum to the BCCI and its State units to accept the Lodha Committee reforms and file their affidavit of compliance before the final hearing on Oct 17.