Franchisees kept minting money even as state associations hosting IPL matches suffered financial losses to the tune of several crore, former BCCI President Jagmohan Dalmiya alleged during the BCCI's Working Committee meeting in Mumbai.
BCCI sources said the Cricket Association of Bengal chief, who spoke for about half an hour in the hour-long meeting in Mumbai on Sunday, detailed the financial bunglings that took place as early as in the first edition of the IPL.
Dalmiya alleged that the BCCI paid Rs 20.8 crore as compensation to inaugural IPL champions Rajasthan Royals and runners-up Chennai Super Kings when the first Champions League Twenty20 was cancelled owing to the Mumbai terror attacks in 2008.
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"At the most Rs 5.1 crore could be paid to each of the two franchisees, provided they could provide evidence of loss suffered, which was admittedly not provided to the Working Committee," Dalmiya said in the meeting.
Sources say Dalmiya also pointed out that the IPL's Governing Council paid an additional Rs 26.2 crore to the two franchisees but never informed the Working Committee about it.
"There was no contractual obligation of BCCI to pay any money to the franchisees on account of cancellation of CLT20. This fact was also suppressed from the working committee," Dalmiya, who had prepared a note on the financial bunglings, alleged.
"Thus, the BCCI overpaid Rs 36.8 crore to the two franchisees. It seems that this money belongs to the member associations of the BCCI and has to be recovered," they added.
Apart from this, Rs 10.17 crore were paid to the franchisees as pouring rights, which was to be shared on a 48:40 ratio with the BCCI.
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The BCCI was entitled to approximately Rs 5 crore out of the sum of Rs 10.17 crore. However, the entire sum was paid to the franchisees. Thus the BCCI and the member associations have suffered a loss of Rs 5.2 crore, the sources said.
The IPL is under the Income Tax Department and Enforcement Directorate's scanner for alleged corruption in deals. The league's Chairman and Commissioner has already been suspended after being accused to corruption and bid rigging.