Sports

Jay Shah Explains Why FDI Can’t Be Allowed in Indian Premier League

On Monday, March 11, Jay Shah, the Secretary of the Board of Control for Cricket in India (BCCI), declared that foreign investment in the Indian Premier League (IPL) is not permitted without the central government’s and the Reserve Bank of India’s (RBI) clearance.

In order to dispel any doubts over possible Saudi involvement, Shah stated that as the BCCI is registered in India as a society and not a business, there can be no foreign direct investment in the IPL. Shah said to PTI, “BCCI is a society and nobody can invest in it,” during a conversation.

In India, the Reserve Bank of India and the national government must both approve foreign investment before it may be accepted by a registered organization.
Since the state-owned oil and energy business of the Kingdom already sponsors the Aramco Purple Cap (for the most wickets in a season) and Aramco Orange Cap (for the most runs in a season) awards, there were many rumors of a Saudi investment.

The Chennai Super Kings, the reigning champions, will play the Royal Challengers Bangalore at the MA Chidambaram Stadium in Chennai on March 22 to kick off the 2024 Indian Premier League.

BCCI Registration History

Under the Societies Registration Act of 1860, the Board of Control for Cricket in India (BCCI) is a recognized nonprofit organization. The board was established in 1928, but it wasn’t until 1940 that it was officially registered as a society—that is, in Tamil Nadu, not Maharashtra, where its current offices are in Mumbai.

The Madras Societies Act was used to register BCCI since Paramasivan, the organization’s fifth president, operated out of Madras, Chennai.

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Should society be improperly managed by its Board of Trustees, direct government intervention is not permissible. Unlike other sports organizations, BCCI does not get any government subsidies as a society. For the most part, it simply answers to the ICC.

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