The Indian politicians (at it again) league

Honore de Balzac once said: “Behind every great fortune there is a crime”.

The third season of the Indian Premier League (IPL) attracted more than just the cricket lover – it attracted the Indian Income Tax Department. And with allegations of impropriety in bids for the two new IPL franchises flying thick and fast, the government directed the tax department to scrutinize the bidding process. It was alleged that while unsuccessful bidders were told to keep their bids above a stipulated amount, successful bidders were (unsuccessfully) advised to bid at a lower amount. Then, even as the tax authorities failed to trace the bid-papers of the two unsuccessful bidders, a newspaper reported that one of them had confirmed that their bid papers were with them.

All of this while justifying doubts about the fairness of the bidding process throws up questions about the involvement of insiders within the IPL governing council. Just as it gets curiouser and curiouser it appears that the government is contemplating referring the allegations of the IPL bid-rigging to the Competition Commission of India (CCI).

Bid-rigging is considered anti-competitive in various jurisdictions across the world. In some countries like Canada, it is a criminal offence and, if convicted, firms and individuals face fines or imprisonment.

Anahita Irani is a senior associate and Bharat Budholia is an associate at Juris Corp, a Mumbai-based firm that specializes in banking and finance, foreign investments, private equity, direct tax, bankruptcy and restructuring, M&A, insurance, energy and infrastructure, dispute resolution and International arbitration.