FEMA violation charges on BCCI for guarantee to foreign players !

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IPL blues continues ! It is alleged in media by quoting ED officials that  the BCCI did not take  permission from the RBI for guaranteeing the amount to the foreign players while organizing IPL. It is stated that West Indian Kieron Pollard, who the Mumbai Indians bought for $ 2.5 million, had a base price, or ‘guarantee’ of $200,000.An unidentified  ED official is quoted as under in the media

“The guarantees are in total violation of section (6)(3)(i) of FEMA 1999, read with Notification no. FEMA-8/RB-2000 dated 3.5.2000, which basically says that no Indian should give a guarantee or surety to any person who is not a resident of India without the ‘general or special permission’of the RBI,”said an ED official.

This lacuna in following procedure may prove costly to BCCI  as  penalty may be imposed  on the BCCI.