In this blogpost, Sayan Mukherjee, Student of University of Calcutta and the Diploma in Entrepreneurship Administration and Business Laws by NUJS, writes about the history of the board of control for cricket in India, its structure and reason why it was registered in Tamil Nadu. 

Cricket in India at all levels is governed and managed by the Board of Control for Cricket in India (hereinafter B.C.C.I.), the wealthiest Board in the cricket world. Yet it was formed in December 1928 as a Charitable Society, registered under the Tamil Nadu Societies Registration Act.

History

Birth of Cricket took place in England during 1300 as an aristocratic pastime. Indians embraced it during the colonial period mainly because it helped in the socialisation process and allowed the commoners to meet with the aristocrats as well as their rulers, i.e., the britishers as equals on the fields of play. With the entry of  Indian team into the Imperial Cricket Conference , the then ICC and eventually to international cricket through the efforts and support of the elites, viz, Arthur Gilligan (English Captain- 1924-25), the Maharaja of Patiala, a British businessman named R.E. Grant Govan and Anthony De Mello, B.C.C.I. was formed as a consortium of six associations- Southern Punjab Cricket Association, Cricket Association of Bengal, Assam Cricket Association, Madras Cricket Association and Northern India Cricket Association. Govan was elected as the first President and Anthony De Mello as the Secretary. Initially, it was functioning as an unregistered association but on November 28, 1940, it got registered under the central legislation of the Societies Registration Act, 1860. Eventually after the enactment of Tamil Nadu Societies Registration Act, 1975, B.C.C.I. stood deemed registered under it (as per section 53 of the act)

Business structure

B.C.C.I. being an autonomous body, keeps its financial matters out of public scrutiny. The Board does not take any grant or financial assistance from the government and hence the ministry has not declared it as a public authority under the RTI Act, 2005. The B.C.C.I. only seeks government approval for sending teams abroad and inviting foreign teams within the territory. The sole revenue of the Board is generated mainly from broadcasting, merchandising, ad sales, sponsorships, and donations which it receives from various sources. Due to the rise of world media and popularity of the sport in the country by leaps and bounds, B.C.C.I. has been successful in arranging funds in huge amount, especially in the last decade. For example, Air Sahara was the official Indian cricket team sponsor for a period of four years at INR 475 crore.

B.C.C.I. claiming exemption as a charitable society had avoided taxes on its income. This is accepted only because of the fact that the Board cannot appropriate its profits among members even upon its dissolution (vide section 42- TN Societies Registration Act, 1975), but its debts and liabilities may, however, be satisfied. The whole revenue generated should be utilised in the development of the game of cricket and betterment of infrastructure at both state and national levels. These facts are expressly declared in the B.C.C.I. Rules and Regulations registered with the registrar of Societies.

According to the provisions of Tamil Nadu Societies Registration Act, the tax would be exempted only to the extent of charitable activities of the society. Thus, the Income Tax Department was justified when it withdrew this exemption in 2007-08 as B.C.C.I. commercialised its operation by promoting Indian Premier League (IPL) to hold the dying popularity of the game after India’s poor performance in 2007 WC, where Indian team failed to qualify for the top 10 teams in the world. Unfortunately, the Board failed to pay tax amounting to INR 373 crore, having paid only INR 41.9 crore in the 2009-10 financial year.

In the case of B.C.C.I., its legal framework is governed by TN Societies Registration Act, 1975. This was effected on and after April 22, 1978, when the act came into force.

The day-to-day activities of B.C.C.I. are governed under the supervision of the Board members comprising of:

(a) President

(b) Five Vice-Presidents, one from each zone

(c) An Honorary Secretary

(d) An Honorary Joint Secretary

(e) An Honorary Treasurer

(As per B.C.C.I. Rules and Regulations clause 7, pg.-15).

In addition, B.C.C.I. had to comply with the regulatory requirements as per the provisions of the said state enactment, such as:

1. Accounts and audits (vide section 16)
2. Maintaining a list of members (vide section 14)
3. Memorandum of Association to be printed or typewritten and signed (vide section 7)

Now, when we have learnt about B.C.C.I.’s financial structure along with the basic legal requirements, abiding by which the Board operates; the organizational structure of B.C.C.I. is our next target.

Structure of BCCI

The main working of B.C.C.I.’s daily affairs is looked after by the Working Committee. The President is mainly questioned about its working, and he leads the Board officially. The Secretary helps in the operation of the bank accounts as a sole signatory and also his name is used when the Board sues or is sued by an outsider if disputes arise.

But in recent past, on Supreme Court of  India’ appointment, the  Lodha Panel has recommended reshuffling the organizational structure of  B.C.C.I. and a model structure is also made public by such authority, but the same is yet to be considered.

Why is B.C.C.I registered in Tamil Nadu

The reasons for B.C.C.I.’s registration in Tamil Nadu backdrops to the pages of history. When the Board was established, Bombay got the upper hand and became it’s headquarter. This was because Bombay was facilitated with an advanced port which the English cricket administrators used for transport and communication purpose. But along with Bombay, eventually, two other offices were established, viz., Madras and Delhi, so that the Board can have better control over the game of cricket in India. Yet, B.C.C.I. continued to operate as an unregistered body.

During the phase of Second World War, Mr Paramasiva Subbarayan, the former Chief Minister of Madras Presidency, was appointed as the 5^th President of B.C.C.I. (term: 1938-46). He was Madras-based administrator and operated all the important affairs of the Board from the Treasury Office of B.C.C.I. in Madras. Thus, it was during his tenure and under his initiation that B.C.C.I. got registered under the Central Legislation- Act XXI of 1860 at Madras on 28/11/1940.

During the term of 17^th President of B.C.C.I. (Mr M Chinnaswamy), the body was deemed registered under Tamil Nadu Societies Registration Act, 1975, when the act came into force on 22/05/1978. This was in accordance with the provisions of section 53 of the said statute. Other reasons for such registration may be stated herewith:

• Simple process of registration (current provision- Chapter II of Tamil Nadu Societies Registration Act, 1975)
• Guided by its own Rules and Regulations.
• The limited scope of interference by an outsider.
• Tax exemption due to charitable nature of operation- affiliation to certificates 12A and 80G of the Income Tax Department

Now, here it is. The Structure and Registration of B.C.C.I. has been just laid down before you. But wait! Did we just miss something? It was only one side of the picture. B.C.C.I. is much more than a charitable organisation both structurally as well as administratively. We just cannot miss the entire buzz that’s going around regarding B.C.C.I.’s legal status. Is it a “public authority”? In Zee Telefilms Ltd v. Union of India, the majority out of five-judge Bench observed that B.C.C.I. was not an instrumentality of State as under Article 12 of the Constitution of India. But in another case, the Central Information Commission (hereinafter C.I.C.) was asked by the government to treat B.C.C.I. as a “Public Authority”. The government reasoned that:

• The Central or State government provides security in any B.C.C.I.’s sporting event.
• The construction of stadiums by B.C.C.I. is often made on lands provided by the State governments at concessional rates.
• C.C.I. performs public duty by selecting ‘India’ team for international events.

Thus, the Centre claims that B.C.C.I. is financed substantially by the government and should qualify as a “Public Authority.” We expect, the legal status of B.C.C.I. will be clarified on completion of this hearing.

References

• bcci.tv
• quora.com
• techwelkin.com
• The modules supplied
• NALSAR Law Review
• indiankanoon.org