A Major blow for BCCI as Lodha panel to appoint independent auditors to check its finances

Supreme Court has given a major blow to BCCI as on Friday it ordered the Lodha Panel to appoint an independent auditor to study the BCCI’s finances, including the contracts involving media and several other tenders above certain value.

In this auditing income and expenditure of the BCCI will be scrutinized by checking and analyzing those contracts which are above the threshold value suggested by the court and committee. The apex court has also authorized Lodha Panel to take obtain advice of the auditors on the fairness of the tendering process.

Lodha committee would also be responsible to formulate the terms of engagement of the auditors having regard to the above directions and BCCI shall defray the costs, charges and expenses of the auditors.

This decision was taken by the bench comprising of Chief Justice T.S Thakur, Justice A.M. Khanwilkar and Justice D.Y. Chandrachud who further restricted BCCI not to provide any funds to its state affiliates until they undertake to abide with the directions of the court and the recommendations of the Lodha committee.

The only relief which is granted to BCCI is that they have been given time till 3^rd December to comply courts order and have to file a compliance report by 5^th December.

Judge Chandrachud said “BCCI shall forthwith cease and desist from making any disbursement of funds for any purpose whatsoever to any state association until and unless the state association concerned adopts a resolution undertaking to implement the recommendations of the Committee as accepted by this Court in its judgment dated 18 July 2016.”

The BCCI President Anurag Thakur and Secretary Ajay Shirke will have to file a statement within 2 weeks on indicating the recommendations that have been compiled with and the manner of compliance and the steps being adopted for securing compliance with the remaining recommendations.

Both of them would have to appear before the Lodha committee and let them know about the steps taken by them to implement the recommendations and genuinely pursuing the court orders.