18 July 2016
Supreme Court
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BOARD OF CONTROL FOR CRICKET Vs CRICKET AASOCIATION OF BIHAR .

Bench: T.S. THAKUR,FAKKIR MOHAMED IBRAHIM KALIFULLA
Case number: C.A. No.-004235-004235 / 2014
Diary number: 24114 / 2013
Advocates: CYRIL AMARCHAND MANGALDAS AOR Vs


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REPORTABLE

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.4235 OF 2014  BOARD OF CONTROL FOR CRICKET ..PETITIONER

VERSUS

CRICKET ASSOCIATION OF BIHAR & ORS. ..RESPONDENTS WITH

CIVIL APPEAL NO.4236 OF 2014  AND  

CIVIL APPEAL NO.1155 OF 2015  

J U D G M E N T

T.S. THAKUR, CJI.

1. “Change” it  is  famously  said  is  all  that  is constant  in  the  world.   And  yet  the  world  hates change,  no  matter,  it  is  only  change  that  has brought progress for mankind.  Statesmen, Scholars and Scientists have spoken for change and eulogised its significance. For instance  Charles Darwin has

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spoken of ‘change’ in the context of his theory of evolution and declared “It is not the strongest of the species that survive, not the most intelligent,

but  the  one  most  responsive  to  change.”  Benjamin Franklin, put it more pithily when he said “When you’re finished changing, you’re finished”.  Albert Einstein spoke of change when he said “The world as we have created is a process of our thinking.  It

cannot be changed without changing our thinking.”

The truth is that resistance to change stems partly from people getting used to  status quo and partly because  any  change  is  perceived  to  affect  their vested interest in terms of loss of ego, status, power or resources.  This is true particularly when the suggested change is structural or organizational which involves some threat, real or perceived, of personal  loss  to  those  involved.   No  wonder, therefore,  that  the  portents  of  change  which  the recommendations made by the Committee appointed by this  Court  symbolizes  are  encountering  stiff resistance  from  several  quarters  interested  in

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continuance of the  status quo.  The fact that the recommendations for change come from a body whose objectivity, fairness, sense of justice, equity and understanding of the problems that are crying for a solution are beyond any doubt or suspicion has made little  or  no  difference  to  those  opposing  the recommendation.   

2. These  proceedings  are  a  sequel  to  our  order dated  22nd January,  2015  [BCCI  vs.  Cricket Association of Bihar and Ors., (2015) 3 SCC 251]. We had by that order answered seven distinct questions formulated in para 20 thereof.  Six out of those questions related to allegations of sporting fraud, conflict of interest leveled against functionaries of the BCCI and the jurisdiction of a writ court to intervene  and  issue  directions  considered appropriate in the circumstances. This Court held that even when the Board of Control for Cricket in India was not “State” within the meaning of Article 12, it was amenable to the writ jurisdiction of the

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Court under Article 226 of the Constitution of India as it was discharging important public functions. Building  further  on  that  finding,  this  Court  had while dealing with Question No.7 set up a Committee comprising Justice R.M. Lodha, former Chief Justice of India as Chairman with Justice Ashok Bhan and Justice R.V. Raveendran, former Judges of this Court as  members  to  determine  and  award  punishment considered  appropriate  on  those  found  guilty  by Justice Mudgal’s Committee and to examine for any disciplinary or punitive action, the role played by Mr. Sundar Raman with the help of the investigating team constituted for that purpose.  More importantly we had requested the Committee to examine and make suitable recommendations on the following aspects:  

119.1. Amendments considered necessary to the memorandum  of  association  of  BCCI  and  the prevalent  rules  and  regulations  for streamlining  the  conduct  of  elections  to different  posts/officers  in  BCCI  including conditions  of  eligibility  and disqualifications,  if  any,  for  candidates wanting to contest the election for such posts including the office of the President of BCCI. 119.2. Amendments  to  the  memorandum  of association,  and  rules  and  regulations

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considered  necessary  to  provide  a  mechanism for  resolving  conflict  of   interest  should such  a  conflict   arise  despite  Rule  6.2.4 prohibiting  creation  or  holding  of  any commercial  interest  by  the  administrators, with particular reference to persons, who by virtue  of  their  proficiency  in  the  game  of cricket, were to necessarily play some roles as coaches, managers, commentators, etc.

119.3. Amendment, if any, to the memorandum of association and the rules and regulations of BCCI to carry out the recommendations of the Probe  Committee  headed  by  Justice  Mudgal, subject  to  such  recommendations  being  found acceptable by the newly appointed committee.

119.4. Any  other  recommendation  with  or without  suitable  amendment  of  the  relevant rules and regulations, which the committee may consider  necessary  to  make  with  a  view  to preventing  sporting  frauds,  conflict  of interests, streamlining the working of BCCI to make it more responsive to the expectations of the public at large and to bring transparency in practices and procedures followed by BCCI.”

3. The Committee accordingly heard the individuals and the Franchisees found guilty by Mudgal Committee and  by  an  order  dated  14th July,  2015  awarded punishments  considered  just  and  proper.   The Committee  also  by  a  separate  report  dated  18th

December, 2015 examined the role of Mr. Sundar Raman and exonerated him of the charges levelled against

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him.  By a separate report dated 18th December, 2015, the  Committee  has  recommended  several  steps  and measures that would in its opinion streamline the working  of  the  BCCI  and  possibly  prevent  any aberrations or controversies in which it has been embroiled in the past.  We shall presently refer to the  findings  and  the  recommendations  of  the Committee in greater detail, but before we do so, we must  mention  that  on  receipt  of  the  Committee’s report and the recommendations, we had issued notice to  the  parties  to  give  them  an  opportunity  to respond to the same.  The BCCI has, accordingly, submitted  its  reply  to  the  reports  and  the recommendations made therein. In addition, several other organizations and individuals have intervened to  file  their  responses  and  objections  to  the reports and the recommendations and raised several issues.   

4. At the same time certain other intervenors have stoutly supported the report of the Committee and

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the  recommendations  made  therein.  For  instance, intervening applications made by Mr. B.S. Bedi and Mr. Kirti Azad, Cricket Association of Pondicherry and  several  others  have  supported  the recommendations made by Justice Lodha Committee. The recommendations are also supported by the respondent Cricket  Association  of  Bihar,  who  has  prayed  for acceptance  of  the  recommendations  and  issue  of directions  for  appropriate  follow  up  action  in implementation of the same.   

5. We  have  heard  at  considerable  length  learned counsel for the parties and those appearing for the intervenors.  As noticed earlier the task assigned to the Committee was to recommend such changes in the rules and regulations of BCCI as would in the opinion of the Committee safeguard the interest of public at large in the sport of cricket, improve the ethical  standards  and  discipline  in  the  game, streamline and promote efficiency in the management of  BCCI,  provide  accessibility  and  transparency,

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prevent  conflict  of  interest  situations  and eradicate political and commercial interference and abuse  and  create  mechanisms  for  resolution  of disputes within the BCCI.  The direction issued by this Court for all round reform in the working of the BCCI and the conduct of its affairs proceeded fundamentally on the juristic foundation that BCCI was discharging public functions and is, therefore, subject to the rigours of ‘Public Law’ making it mandatory for the BCCI to adhere to the principles of  reasonableness,  fairness,  accountability  and transparency.   

6. The  Committee  had  in  the  right  earnest circulated  a  detailed  questionnaire  to  various stakeholders, aficionados and patrons of the game. The questionnaire was based on the view taken by this Court in the main judgment, the existing rules and regulations of the BCCI and various articles and news  reports  which  pointed  out  the  flaws  and loopholes  in  the  cricket  administration  in  this

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country.  The questionnaire contained 135 questions grouped under 8 distinct heads of areas of concern for cricket administration namely (a) Organization, structure and relationship (b) Source and extent of jurisdiction (c) Offices, committees and elections (d) Commercial engagements, contracts and services (e) Audit, accounts and finances (f) Player welfare and dispute resolution (g) Conflict of interest (h) Oversight and transparency.

7. The Committee conducted over 35 days of sittings at  Mumbai,  Bangalore,  Chennai,  Kolkata,  Hyderabad and  New  Delhi  in  the  process  providing  ease  of access  to  respective  representatives  from  various zones and primary Test Centres.  The Committee also interacted with 75 persons in India including Former Captains,  International  and  First  Class  Players, Coaches,  Managers,  Administrators,  Journalists, Talent  scouts,  Authors,  Lawyers,  Club  Owners, Selectors  and  a  Former  Chief  Justice  of  a  High Court.  Suggestions made by those who responded to

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the questionnaire and those who interacted with the Committee  were  summarized.   The  Committee  also researched  media  reports,  documentaries,  published material,  draft  legislations,  books  and  articles, apart from several unsolicited missives from Cricket fans,  local  experts  and  administrators  about  how maladministration was rife in cricket all over the country.   The Committee appears to have received complaints of defalcation and siphoning of funds, opaqueness  in  administration,  blatant  favouritism and  political  interference  in  almost  all  State Associations, varying only in degree from place to place. The Committee prepared a comparative analysis of international sports policy and how the same were structured in their constitution, electoral process and  overall  management  and  how  measures  exist  to check conflict of interest and enforce ethics.

    8. Based on the interactions held and the responses received  from  various  quarters,  the  Committee identified the problem areas in the functioning of

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the  BCCI,  and  upon  an  in-depth  appraisal  of  the material and the interactive sessions held by the Committee came to the definite conclusion that BCCI has been suffering from many ills that had become endemic due to the apathy and involvement of those at  the  helm  of  the  Board’s  administration.   The Committee  recorded  a  specific  finding  that  the problems faced by the BCCI have been compounded by the  involvement/association  of  many  high functionaries in the Central and State Governments some  of  whom  had  remained  in  charge  of  the administration of the BCCI for several decades.  It also came to the conclusion that many officials of the State Associations were holding power without any  accountability  and  transparency  by  converting the Associations into personal fiefdoms.  It found inequities writ large at the high table with some States  over-represented  in  votes,  tournament participation and central funding while others were made to wait endlessly in the wings for indefinite period  until  favoured.   The  Committee  found  that

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policies had been formulated and altered to suit the needs  of  a  few  powerful  individuals  and  that coteries  had  been  formed  around  them  which  had polarized  and  compromised  independent  leadership. The Committee regretfully found that those who had no such agendas had remained quiet, their silence emboldening  further  malfeasance.   It  found  that cricket players, who are sport’s biggest drivers, had also not been spared from the apathy of the BCCI as they were treated less like assets and more like employees and subordinates of those governing the game.  The Committee found that the Indian Premier League  (IPL)  which  was  a  remunerative  and glamourized  component  in  India  had  unsavoury interference at the highest echelons of cricket and the overlapping and conflicting interests were not only condoned, but those in the management of the Board  had  made  ex-post  facto  amendments  to facilitate the same.  Having said that the Committee did not hesitate to recognise the hardwork of BCCI staff members and match officials who had ensured

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that hundreds of matches are organized annually at all levels and that updates are provided to keep the BCCI fully informed. Charity matches for national causes and humanitarian assistance is another area in which BCCI has been applauded by the Committee while  stating  that  the  Committee  has  consciously ensured that no measures are recommended that would limit or interfere with the good work being done on behalf of the BCCI.  The report submitted by the Committee further indicates that while the Committee was still in the process of hearing the concerned, the newly elected President of the BCCI had even without waiting for the Committee’s report adopted and projected the Committee’s views as his roadmap for improving the functioning of the BCCI.  Some of those measures like uploading of the Constitution and Bye Laws on the BCCI website, creating a policy for  avoidance  of  Conflict  of  interest  and appointment of Ombudsman had also been taken.  The Committee, however, found that although these steps were in the right direction, the same were neither

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comprehensive nor substantive.   The need of the hour  observed  the  Committee  was  not  of  making cosmetic changes but those that are fundamental for laying proper foundations on which the BCCI could function in a professional and transparent manner bringing  cricket  back  to  its  pristine  form  and restoring  the  confidence  of  the  cricketers  and lovers of the game alike.  The Committee said:

“At a time when the nation’s highest court has been  compelled  to  find  that  the  game  has fallen  into  disrepute,  only  extraordinary steps will bring it back from this chasm.  We are conscious that some of our proposals may evoke  varied  responses,  but  the  collective conscience  of  this  Committee  is  clear  that tough  measures  are  called  for  to  restore Indian  cricket  to  its  pinnacle  of  glory. Individual interest will have to be sacrificed for  the  sake  of  the  institution,  and  no exigency of convenience or convention shall stand in the way of a whole scale structural overhaul.  The current governance structure of the BCCI and its Member Associations is far from satisfactory and it needs to be suitably restructured.  Strict terms and tenures have to be imposed on administrators, oversight and audit  of  member  associations  need  to  be carried out, professional management deserves to be introduced in the administration of the game, all States require an equal say in the affairs of the BCCI, financial prudence has to be exercised, independent views in Governance are  imperative  and  cricketers  have  to  be

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protected and given a free hand in cricketing affairs.  There also ought to be an Ombudsman, an Ethics Officer and an Electoral Officer who can  provide  institutional  resolution  while principles  of  transparency  and  conflict  of interest need to be infused without further delay.    The report that follows is the Committee’s effort  to  restore  Indian  to  its  deserved status  by  putting  in  place  good  governance structures and best practices.”

9. In ‘Chapter One’ of its report, the Committee dealt with the Structure and Constitution of BCCI, identified  the  problems  that  arise  from  their current status and the need for reform in the same. For  clarity  and  better  understanding  of  the solutions proposed by the Committee we may gainfully extract Chapter One of the Report submitted by it.

“Chapter One: The Structure and Constitution

It was nearly 200 years after the British first  brought  cricket  to  India  that  its governing  body  was  created.   At  a  time  of communal Gymkhanas and the occasional touring team from England, the princely families and other cricket patrons came together to create the Board of Control for Cricket in India, which  was  registered  as  a  not-for-profit society in Madras (now Chennai).  The BCCI has grown from its original composition of less than half a dozen provincial members to have

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five times that number representing various groups and territorial divisions.  

The Structure

The  BCCI  at  the  moment  consists  of  30 Full Members some of whom do not field teams, while others do not represent any territory. Twenty  States  and  one  Union  Territory  are included  and  ten  States  and  six  Union Territories  remain  either  excluded  or disenfranchised.   In  addition,  officially there are Associate and Affiliate Members as well as so-called Future Members.

The  Services  Sports  Control  Board, the  Railways  Sport  Promotion  Board  and  All India  Universities  represent  particular national  service  groups,  who  traditionally constituted the largest employers of Indian sportsmen before the advent of liberal private enterprise.  Apart from these, two Clubs – the Cricket  Club  of  India  at  Mumbai  and  the National Cricket Club at Kolkata also enjoy full membership of the BCCI.

Problems

An  examination  of  the  existing structure revealed the following anomalies:

a. Not  all  States  are  represented  on  the BCCI

One  old  State  (Bihar)  and  two  new  states (Chhattisgarh  and  Uttarakhand)  and  six North-Eastern  States  (Sikkim,  Manipur, Meghalaya,  Nagaland,  Arunachal  Pradesh  and Mizoram) are unrepresented on the Board.  Of course,  the  most  significant  omission  was Bihar, which, being the third most populous State  in  the  nation  required  the  cricket

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representatives of its 100 million populace to migrate to other States to ply their trade. Apart  from  Tripura,  the  other  six sister-States  of  the  north-east  had  been relegated to various categories of membership (Associate, Affiliate and Future) which really have no voice on the Board.

b. Some States are over-represented

Mainly attributable to their historic legacy, both  Maharashtra  and  Gujarat  have  3  Full Members,  each  representing  parts  of  their respective  States.   Maharashtra  therefore exercises votes through the Associations of Mumbai, Vidarbha and Maharashtra while Gujarat fields the Associations of Baroda, Gujarat and Saurashtra.

c. Some members do not represent territories

The  Services  Sports  Control  Board,  the Railways Sport Promotion Board and All India Universities show that territorial divisions were not the consistent criteria to determine membership  of  the  BCCI.   However,  these members were represented by teams that played competitive cricket.

d. Some  members  neither  play  matches  nor represent territories

Both  the  National  Cricket  Club  (NCC)  at Kolkata and the Cricket Club of India (CCI) at Mumbai were more in the nature of recreation clubs  which  neither  fielded  teams  for tournaments nor had a geographical basis for being Full Members of the BCCI.  In fact, by virtue of CCI being granted full membership, Maharashtra has garnered as many as four out of the total 30 votes on the Board.

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e. Union  Territories  are  unrepresented  on the Board

Except  for  Delhi  which  enjoys  a  special position under the Constitution as well, none of the other six Union Territories are Full Members of the BCCI.  In fact, there have been repeated  representations  by  the  Cricket Association of Pondicherry that just as Delhi, it  is  also  a  Union  Territory  with  a  Chief Minister and ought to be made a Full Member. This issue is sub judice before the Madras High Court but nonetheless, there seems that some  artificial  distinction  exists  in  the extant rules between Delhi and Puducherry.

f. Ad-hoc creation of Membership categories

The  Regulations  of  the  BCCI  only  speak  of three categories of members – Full, Associate and Affiliate.  However, we find that there is a list of six “Future Members”, a category that  does  not  have  a  legal  basis.   This consists of Uttarakhand, Mizoram, Telangana, Chandigarh, Puducherry and Andaman & Nicobar. Such a classification seems a half-way house with  no  real  purpose  except  to  give  the association  an  illusion  that  it  will  be promoted at some vague point in the future.

g. Arbitrary  addition  and  removal  of associations

For reasons best known to the BCCI, despite being  a  Full  Member,  the  Rajasthan  Cricket Association  has  been  treated  as disenfranchised, resulting in the players of the State being forced to move elsewhere to compete. The non-addition of the Bihar Cricket Association or an equivalent has also led to such a denial to the players from Bihar.

Solutions

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Almost universally, apart from those who represented the associations in Gujarat and Maharashtra, the prevalent view was that that the State is a fair unit of representation on the BCCI.  On a consideration of the entire issue, the Committee is of the view that it is not proper for only one or two States to have multiple members when all other States have single memberships (in fact, while many States have  no  representation).   Democratic  norms require  each  State  should  have  equal representation,  and  therefore  the  Committee proposes the policy of ‘One State – One Member – One Vote’.  In fact, this is the policy followed by other national sports associations (IHF & AIFF), each of whose members have an equal vote regardless of size or population. Even at the international level (IOC & FIFA), this is the position.  Cricket ought to be no different.

It was however also stated that as far as disbursement  of  funds  by  BCCI  for  cricket development, it need not be uniform, but can depend on the need, infrastructure and other relevant criteria, formalized as a clear and equitable  policy  to  incentivize  Members  to develop the sport.

In keeping with the above principle, and notwithstanding any sense of sentiment, there would  also  be  no  place  for  multiple associations  from  a  single  State.   The Committee is of the view that it be left to the BCCI to decide which of the 3 associations from Gujarat and Maharashtra would be taken to represent the entire State, and the remaining 2 associations from each State would become Associate Members, who would however continue to field teams for competitions as they have done in the past.  Equally, in States where there are disputes concerning the appropriate governing  body  [Jammu  &  Kashmir,  Bihar,

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Rajasthan, etc.], it is best left to the BCCI or the Court (as may be the case), to decide which association would represent the State.

As  the  Services,  Railways  and Universities have hitherto enjoyed Full Member rights  although  they  do  not  represent  a particular  State,  the  Committee  recommends that they be accorded the Status of Associate Member  so  that  their  views  may  still  be considered  while  they  will  not  have  voting rights.  The same principle would apply to the Clubs  (CCI  and  NCC),  which  do  not  field cricket teams and have no cause to be treated as Full Members.

Those existing Members who are affected by the changes suggested by the Committee must appreciate  that  the  changes  are  being suggested in the interest of the game as a whole and also having regard to BCCI’s role as a national body to promote and control cricket in India.  Governance of cricket being the central theme, the changes in membership in the BCCI are inevitable and must be seen by all  concerned  in  the  right  spirit  of  fair representation  and  for  the  betterment  of cricket administration.

While there are seven Union Territories, it was found that only Delhi and Puducherry have  a  Chief  Minister  and  are  treated  as substantially independent governing entities. At first glance, there seems no rationale for a distinction between the two, but what cannot be denied is the fact that Delhi, apart from being the national capital, is also a major Test Centre with an international stadium and has  nearly  20  times  the  population  of Puducherry.  There may thus be some merit for Puducherry not immediately being included as a Full Member, especially when the issue is sub judice.  Among the Union Territories, it would however be appropriate for Puducherry to be

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now  inducted  by  the  BCCI  as  an  Associate Member which will retain rights to field a team and compete.

The consequence of the above realignments would also have an effect on how the Zones are constituted.   The  Zones  would  consist  of Members in such a manner that each of them would  be  reasonably  balanced  as  far  as competition for the various zonal tournaments is concerned.  However, this reconstitution is best  left  to  the  BCCI  for  the  purposes  of convenience and competition.  It is also left to  the  discretion  of  the  BCCI  whether  the Union Territories would field individual or combined teams for tournaments and whether, for  the  purposes  of  expediency  and convenience, the teams representing the States of the North-East be combined as well.  

The  categories  of  Affiliate  and  Future Members are therefore to be removed, and only Full  Members  and  Associate  Members  will remain, the former with voting rights and the latter without.  The 4 associations from the States of Maharashtra and Gujarat which would be  relegated  to  the  category  of  Associate Members shall, however, continue to receive grants  for  cricket  development,  as  may  be assessed  by  the  BCCI  depending  on infrastructure and relevant criteria.  They will  also  field  teams  in  the  domestic tournaments and host international matches.

It is imperative that all players across the country have opportunities to represent their States and Zones and then the national team.  To punish the innocent residents and players of a State for the real or perceived shortcoming  of  the  Member  Association  is illogical  and  unacceptable.   Even  if  an alternate  Association  is  not  readily available, BCCI should function as the parens patriae  of  Indian  cricket  and  continue  to

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provide equal and alternate avenues for that particular  State.  The  Model  Memorandum  of Association and Rules & Regulations of BCCI are at ANNEXURE-A”

10. In Annexure-A to the report, the Committee has proposed Model Memorandum of Association and Rules & Regulations of the BCCI which not only sets out the objects and purposes of the BCCI with commendable clarity but also the Rules and Regulations governing its affairs.  It is noteworthy that neither the BCCI nor  the  interveners  have  found  fault  with  the revised Memorandum of Association as proposed by the Committee.  What has come under attack both from the BCCI  and  the  intervenors,  aggrieved  of  the recommendations  are  the  Rules  and  Regulations proposed by the Committee.   

11. Rule 3 of the proposed Rules and Regulations which  deals  with  Membership  and  Jurisdiction  of Members, inter alia, provides that Membership of the Board  shall  be  confined  to  Full  Members  and Associate Members.  It further provides that each

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State  shall  be  represented  by  a  State  Cricket Association  duly  recognized  by  the  BCCI  and  that such associations shall be Full Members.  No State shall have more than one Full Member according to Rule 3 of the proposed Rules.  Rule 3-B enumerates 30 States in the country including Delhi and Goa as Full Members of the BCCI.   Rule 3-C provides for recognition  of  only  one  Member  out  of  multiple Existing  Members  for  a  State  while  proposing  to convert the remaining as Associate Members.  Rule 3-C reads as under:

“3-C.  In  states  with  multiple  Existing Members, the BCCI shall recognize one of them to represent the State, while the remaining shall become Associate Members.”

12. Equally  important  is  the  Rule  3(b)(1)  which enumerates grounds for sanction and de-recognition of a Full Member and reads as under:

“3 (b) Grounds for sanction and derecognition of a Full Member

(1)  No Member shall be entitled to any grant from the BCCI if its Constitution fails to provide  for,  or  comply  with  the  following within One year after the Effective Date:

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(i) The  Association  shall  not  have  any provision for any post to be held for more than 9 years.

(ii) The  governing  body  of  the  Association shall include representatives of players and women, and a nominee of the Accountant General of the State.

(iii) The Association shall grant automatic membership  to  former  international  players hailing from the State.

(iv)  The  Association  shall  not  have  proxy voting.

(v) There shall be a provision whereby the Office  Bearers  of  the  Association  stand disqualified  under  any  of  the  grounds  laid down in Rule 14(3) below.

(vi)  The  Association  shall  appoint  an Electoral Officer, an Ethics Officer and an Ombudsman.

(vii)  The  Association  shall  abide  by  the principles  of  Transparency  laid  down  in Chapter 8 of these Rules.”

13. Rule 4 stipulates that each Full Member shall have one vote to be exercised through its authorized representative and that an Associate Member shall be entitled to participate in the General Body Meetings

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but shall not be entitled either to vote or have its representative elected to the Apex Council.  

14. In terms of Rule 3(b)(1)(v)  (supra), a person shall be disqualified to be an Office Bearer of any association on the grounds set out under Rule 14(3) which reads as under:

“14.THE APEX COUNCIL

(3)  A person shall be disqualified from being a Councillor if he or she:

(a) Is not a citizen of India;

(b) Has attained the age of 70 years;

(c) Is  declared  to  be  insolvent,  or  of unsound mind;

(d) Is a Minister or a government servant [except for the nominee under Rule 14(2) (c)];

(e) Holds any office or post in a sports or  athletic  association  or  federation apart from cricket;

(f) Has been an Office Bearer of the BCCI for a cumulative period of 9 years;”

15. In Chapter Two of the Report the Committee has examined the composition of the office bearers of

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the BCCI and held that those at the helm of the game come from a mixed milieu – some are patrons seeking to promote the sport, while others seek to promote  themselves,  with  no  particular  attention being paid to cricket itself.   The Committee takes the view that cricket, with its popularity and its finances ought to be run professionally.  Towards that  end,  the  Committee  considers  it  imperative that a strong governance structure is put in place, which  will  be  at  arm’s  length  from  the  actual day-to-day management of the Associations and the game.  The Committee has recorded a finding that with an individual-centric constitution the reins of  cricket’s  richest  and  arguably  most  powerful national  body  remains  mired  in  controversy  and seems to have strayed from its chosen path.   

16. The Committee takes the view that BCCI finds it difficult  to  control  and  manage  the  IPL  and  its most successful venture threatens its existence in its present form.  There seems to be no collective

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interest  in  the  game  being  promoted  and  cricket stands without a custodian for its protection and propagation  in  its  most  passionately  followed nation.   

17. The  Committee  then  identifies  the  problems under different headings and suggests solutions for the same in the following words:

a. Concentration of power

From overall superintendence of the Board and its affairs to taking action against players and even approving the composition of the team chosen by the Selectors, the President  is  all-powerful.  In  practice, this  power  was  even  abused  with  the exercise  of  veto  over  the  changes  in captaincy  and  selection  of  ICC representatives.  Incumbents  were  also known to turn a blind eye when issues of corruption and mismanagement were brought to  their  notice,  even  going  as  far  as permitting retrospective amendments to the bye-laws to favour particular interests.  

b. Lack of competence

The  running of  an organisation  like the BCCI  requires  a  clear  functioning structure  with well  defined ideas  to be executed. The present Working Committee of the BCCI consisting of the various office bearers  elected  by  the  BCCI  and  other

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representatives of the Members do not have any  managerial  expertise  and  requisite experience to run BCCI in a professional manner. Specialists and professionals are usually  engaged  in  an  ad-hoc  manner without any terms and tenures as would be expected with any billion dollar entity.

c. Overlap of diverse functions

To  borrow  an  analogy  from  political governance,  it  is  necessary  that  the making  of  laws  and  regulations (legislative functions) are divorced from implementation  thereof  (executive functions)  and  those  that  review  their validity  or  implementation  (judicial functions).  As  far  as  the  BCCI  is concerned, the Working Committee not only lays down the relevant rules, regulations and  bye-laws  that  govern  the  BCCI,  but also  oversee  their  implementation  and takes  final  decisions  when  a  Member  or third party challenges either the rule or the  manner  of  its  implementation.  These overlaps provide for extremely complicated and messy functioning.   

d. Zonal considerations

There seems to be no rational basis for the Presidency to be rotated as per Zones, which has the effect of forsaking merit. A person who has the support of as few as two or three members in his Zone may end up as the President, if it is the turn of that  Zone  for  election  of  President. Recent  amendments  to  the  rules  have permitted  individuals  who  are  not  even

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from the zone in question to be nominated to  the  post.  For  the  same  reason,  the Vice-Presidents who are elected from each of  the  five  zones  seem  to  be  merely ornamental without any specific functions.

e. No representation to players

It is only by accident that players are elected  to the  Working Committee  of the BCCI.  Their  views  are,  more  often  than not, ignored, and the lack of an assured position  at  the  governance  table  leaves the  players  gravely  hamstrung.  With arbitrary contracts and salaries that are dwarfed by those playing for franchises, it is full credit to the national players that  they  continue  with  enthusiasm  and patriotic fervour to do their best for the country  when  they  have  no  say  in  the affairs  of  the  very  body  towards  which they are the primary contributors.  

f. No representation to women

The BCCI has never seen a woman in the Working  Committee,  and  for  a  body  that runs the sport in the country, the BCCI ought to have bestowed greater attention to  the  women’s  game.  Australia,  New Zealand,  England  and  even  Pakistan  are seen  to regularly  play the  women’s game with  only  governance  apathy  responsible for  the Indian  women’s team  playing few and far between in all forms of the game. Greater support and promotion is required so that youngsters may also be attracted to it.

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g. No independent voice

The  BCCI  has  not  embraced  the  modern principles  of  open  governance,  which  is all  the  more  necessary  when  discharging such  far  reaching  public  functions.  The Working  Committee  consists  entirely  of representatives  of  the  Full  Members, thereby  making  it’s  functioning  a closed-door affair with no representation of  players  or  audit  experts  to  act  as checks on governance.  

h. Unlimited terms and tenures

Many individuals occupy various posts in the  BCCI  for  multiple  terms  and  on multiple  occasions,  without  any  ceiling limit. There has even been an instance of a  former  President  later  becoming  the Treasurer.   

i. No disqualifications

There appears to be no ground on which an office  bearer  has  to  demit  office.  No principles  of  conflict  of  interest,  of age, of conviction by a criminal court or of holding an office under the Government has been laid down to disqualify an office bearer.

Solutions

The  governance  of  the  BCCI  must  be decentralised.   No  individual  is  more important than the institution, and so all crucial  powers  and  functions  hitherto bestowed exclusively on the President will have  to be  divided across  the governing

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body, which is to be known as the Apex Council  (with  a  special  and  separate governing  body  for  IPL,  known  as  IPL Governing Council).  

The  issue  of  competence  regarding those  managing  the  game  has  to  be addressed  by  bringing  in  professional managers and area experts, a theme which is discussed in detail in Chapter three.

As  the  zonal  rotation  policy  is without any rational basis, and as it has been decided to keep the State as the unit to become a Full Member, it is consistent to have a president who is elected from among the Full Members, so that the best and most competent person is selected. The provision  for  five  Vice-Presidents  is detrimental to efficiency and efficacy and so  only  one  Vice-President  shall  be elected to the Apex Council in the same manner as the Secretary, Joint Secretary and Treasurer.  

The Apex Council should have a fair mix  of  elected  representatives  and independent  members.   It  is  recommended that it shall be a nine-member body.  The five  elected  Office  Bearers  of  BCCI (President,  Vice-President,  Secretary, Joint  Secretary  and  Treasurer)  shall  be the  members  of  the  Apex  Council.  In addition, the Apex Council shall have four other ‘Councillors’ – two (one male, one female)  to be  nominated by  the Players’ Association which is to be formed, one to be  elected  by  the  Full  Members  of  BCCI from  amongst  themselves  and  one  to  be nominated  by  the  Comptroller  &  Auditor

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General of India. These measures address the following concerns:

a. Transparency  is  brought  in,  and independent  voices  are  heard  in  the governance of the BCCI for the first time;

b. The  public  are  the  primary stakeholders in the game while its players form  its  very  core.  Their  involvement through  these  representatives  is  most deserving and long awaited.  

c. As  women  are  nearly  half  the population of the country, the anomalous fact that they do not have a voice in the governance  of  the  sport  that  has  a ‘billion  hearts’  beating  for  it  is  now rectified.  

d. The nominee of the C&AG also brings financial and audit experience which would bring  in  much  required  oversight  into monitoring the finances of the BCCI.

e. It continues to ensure a strong say for the Full Members, as it provides that two-thirds’  strength  on  the  Council  is made up of their representatives.

In order to ensure that the posts are not  treated  as  permanent  positions  of power,  each  term  should  be  for  three years.   The  total  period  for  which  a person can be a member of the Apex Council shall  be  nine  years  regardless  of  the capacity in which such position was or is occupied. However, in order to ensure that there  is  an  appropriate  cooling-off period, no person shall be a member of the Apex  Council  for  two  consecutive  terms. Any  elected  Councillor  shall  stand automatically  disqualified  after  nine

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years as an office bearer, and shall also be disqualified from contesting or holding the post if he has completed the age of 70 years, is charged under the penal law, is declared  to  be  of  unsound  mind,  is  a Minister  or  government  servant  or  holds any  post  of  another  sports  body  in  the country. Any nominated Councillor however, would  not  have  more  than  one  term  in office. The endeavour in this regard is to filter those who are able and enthusiastic to govern the game that is the national passion.    

18. In Chapter three of its report the Committee has  examined  BCCI’s  need  for  reform  in  its cricketing and non cricketing management with the help  of  full  time  professionals  with  established skill-sets  reporting  systems,  high-level  IT solutions etc. The Committee has recommended that non-cricketing  management  ought  to  be  handled  by professional managers headed by a Chief Executive Officer at the top.  Pure cricketing matters like selection,  coaching  and  performance  evaluation could however be left exclusively to ex players who have  greater  domain  knowledge.   In  so  far  as umpiring  is  concerned  the  same  could  be  handled

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exclusively  by  umpires.   The  Committee  has  with that objective recommended the following structure in  place  of  the  current  management  which  is  ill equipped  to  deal  with  issues  of  cricketing  and non-cricketing  management,  thereby,  adversely affecting its performance.  The flow chart of the Management structure recommended by the Committee is as under:

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19. The  Committee  has  out  of  the  existing Committees  recommended  the  continuance  of  two standing Committees namely; (1) Senior Tournaments Committee and the (2) Tours, Fixtures and Technical Committee for the purpose of providing guidance and advice to the CEO and his Managers.

20. In Chapter four of the report the Committee has discussed matters relating to Indian Premier League and recommended that the franchisee companies who are responsible for fostering competition and making revenues  deserve  to  be  given  a  role  in  the governance of the IPL.  The Committee has opined that  the  IPL  Governing  Council  needs  to  be reconstituted  with  more  autonomy,  comprising  not only representatives of the Full Members, but also of Franchisees, Players and an independent auditor. In addition the Committee has recommended that the Committee/ Commission to be appointed under the IPL Regulations (Anti Corruption Code, Code of Conduct, Operational Rules, etc.) ought to consist of members

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selected by a panel of the Ombudsman, the Ethics Officer and the CEO which shall be presided over by the Ombudsman thereby ensuring independence from the BCCI.

21. Chapter  five  of  the  report  recommends  two initiatives  viz. (i) An Association of Players and (ii) a strict set of procedures to govern players’ Agents.  The Committee notes that while almost all Test playing nations have a Players’ Association, there has been some reluctance on the part of the BCCI to initiate such a move, ostensibly due to the apprehension  of  unionisation.  Similarly,  both England  and  Australia  have  agents’  accreditation systems  in  place  to  ensure  that  only  those professionals  who  qualify  through  a  rigorous knowledge  and  ethics  selection  process  alone represent  the  players.  These  systems  are administered by the National Board in conjunction with  the  respective  Players’  Associations.   The Committee  accordingly  recommends  setting  up  of  a

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Players’  Association  with  a  Steering  Committee comprising four persons named in the Report.  It has also proposed norms for agent’s registration to be administered  by  BCCI  in  consultation  with  the Cricket Players’ Association.

22. In Chapter six the Committee deals with Conflict of Interest and Issues Central to the Regulation of Ethical Conduct in sport.  The Committee has spelt out  specific  types  of  Conflict  of  Interest,  and applied  them  to  individuals  employed  with,  or connected to the BCCI with the recommendation that every Office Bearer, Player, Councillor, Employee, Administrator, Team Official, Umpire or other person connected to the BCCI, its Members or the IPL and its  Franchisees  is  mandated  to  avoid  any  act  or omission which is, or is perceived to be, likely to bring  the  interest  of  the  individual  in  conflict with the interest of the game of cricket.

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23. In Chapter Seven, the Committee has dealt with need for Ombudsman, Ethics and Electoral Officer. The Committee notes that several disputes that exist within the BCCI are born out of years of apathy in governance and gross mismanagement.  The Committee has  found  that  the  relationship  between  the Associations, on the one hand, and the BCCI, on the other, has rarely been equitable and balanced, with the latter exercising its hegemony over the former. The Committee has therefore recommended moderation of  such  relationship  in  an  objective  manner.  The Committee  has  referred  to  the  problems  of disgruntlement  and  litigation  in  the  States  of Bihar, Rajasthan, Delhi and Jammu and Kashmir.  The Committee has found that absence of suitable dispute resolution mechanism has compounded the situation. Even  the  arbitration  system  that  has  hitherto existed  has  been  found  to  be  insufficient  and palpably inappropriate when two unequals are pitted against  each  other,  especially  with  the  State associations  remaining  beholden  to  the  Board  for

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matches, grants and revenues.  In order to reduce the judicial role and the burdening of the courts and to expedite dispute resolution, the Committee has recommended the appointment of a retired Judge of the Supreme Court or a former Chief Justice of a High  Court  as  the  Ombudsman  of  the  BCCI,  to  be appointed once a year at the Annual General Meeting to investigate any complaint received by him/her or suo motu  and to resolve any dispute between the Board  and  any  of  the  above  entities  or  among themselves by following the principles of natural justice, production of evidence and fair hearing. So  also  the  Committee  has  recommended  an  Ethics Officer for monitoring adherence to the principles governing avoidance of Conflict of Interest.  The Committee has recommended that Ethics Officer shall have powers inter alia of laying down of additional guidelines  or  bye-laws  on  ethics,  initiation  of investigation  or  adjudicatory  proceedings  and  the award of warnings, fines, reprimands, suspensions or other  action  as  may  be  recommended  to  the  BCCI.

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According to the recommendation all non-IPL ethics issues shall be administered and adjudicated by the Ethics Officer who shall be a former Judge of the High  Court  to  be  appointed  by  the  Board. Recommendation  for  appointment  of  an  Electoral Officer for conducting elections of the Committee under the Rules has also been made by the Committee. The  Committee  has  recommended  that  in  order  to ensure competence and to distance the entity from any  suspicion  or  bias,  a  former  Election Commissioner  for  India  could  be  appointed  as  the Electoral Officer for the BCCI, whose decision on any subject relating to elections shall be final and conclusive.   

24. In Chapter eight of the report, the Committee has  dealt  with  issues  touching  transparency  and oversight and has noted that BCCI in its website did not carry the existing constitution or the bye-laws of  BCCI.   The  Committee  has  taken  cognizance  of complaints of many stakeholders that very little of

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the functioning of the BCCI is done in a fair and transparent manner and that those who seek greater information are either rebuffed by the Board or won over by enticements.   The Committee has observed that those whose professional livelihood depends on cricket acknowledge the BCCI’s total sway over the sport, and choose to remain silent rather than upset the apple cart. The Committee, therefore, recommends that players and the public, ought to have access to all rules and regulations, codes and instructions of the  BCCI  in  English  and  Hindi  and  that  the  same should be uploaded on the official website of the BCCI.   The  Committee  further  notices  that  the commercial angle has overtaken the enjoyment of the sport, with advertisements continuing many a times even after the first ball and again commencing even after the last ball is played thereby interrupting the  full  and  proper  broadcast  of  the  game. Regardless of the wicket that has fallen, century having  been  hit  or  other  momentous  event,  full liberty  is  given  by  BCCI  to  the  broadcasters  to

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maximize their income by cutting away to commercial, thereby  robbing  the  sport  of  its  most  attractive attribute  –  emotion.   The  Committee,  therefore, recommends  that  all  existing  contracts  for international test and one-day matches be revised and new ones to ensure that only breaks taken by both teams for drinks, lunch and tea will permit the broadcast to be interrupted with advertisements as is the practice internationally.  The Committee has, further, recommended that the entire space of the screen during the broadcast will be dedicated to the display of the game, save for a small sponsor logo or sign.  

25. The Committee has further found that there is need for better financial management and expenses or professional services.  Keeping in mind that BCCI is not  for  profit,  the  Committee  recommends  that resources must be used for the development of the game  and  financial  prudence  must  be  exercised  to avoid any unnecessary expenditure.

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26. The Committee also records a finding that there are no standard norms, objectives and criteria for selection and empanelment of professionals in the field of law, audit, etc.  Similarly infrastructure contracts, media engagements, television rights and supply of equipments are not regulated by any norms or  procedures  to  ensure  a  fair  and  transparent selection  and  engagement  of  the  contractors  and service  providers.   The  Committee,  therefore, recommends  that  clear  principles  of  transparency need to be laid down and that all rules, regulations and office orders of the BCCI, the Constitution of the  various  committees,  their  resolutions,  their expenditures on the various heads, the reports of the  Ombudsman,  Auditor,  Electoral  Officer,  Ethics Officer and the annual reports and balance sheet be uploaded on the BCCI Website.  

27. The Committee further recommends that norms and procedures ought to be laid down for the engagement

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of service professionals and contractors, and full transparency of all tenders floated and bid invited by or on behalf of the BCCI will also be maintained. The Website shall also have links to the various stadia  with  seating  capacities  and  transparent direct ticketing facilities.   

28. The  Committee  has  opined  that  people  of  the country have a right to know the details about the functions  of  the  BCCI  and  its  activities  and recommends to the legislature to bring BCCI within the purview of the RTI Act as a public authority.

29. More importantly, the Committee has recommended that  the  auditors  engaged  by  the  BCCI  should  be tasked to not only undertake a financial analysis but also a performance audit (Compliance Report) to determine whether State associations have actually expended their grants towards the development of the game and mark them on a report card which may be utilized  to  determine  the  financial  support  they deserve  the  following  year.  This  oversight  also

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needs  to  be  considered  in  the  opinion  of  the Committee  because  of  the  high  and  unreasonable expenditure  incurred  by  the  Board  under  various heads which deserves to be limited and streamlined.

30. In Chapter Nine of the Report, the Committee has dealt with the menace of match fixing and betting. The Committee has noted that there is a fundamental difference between betting and match/ spot fixing. While the latter interferes with the integrity of the game and attempts to change the course of the match, the former is a general malaise indulged by different  sections  of  the  society  not  only  with reference  to  cricket  but  other  games  also.  The Committee  considers  the  match/  spot-fixing  as unpardonable and opines that the only way to deal with the same effectively is to make it punishable by  law.  The  Committee  in  that  regard  recommends appropriate amendment by the legislature.

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31. As regards betting, the Committee has on the basis of responses and opinions tendered before it, recommended  to  the  legislature  to  make  the  same legal  with  certain  safeguards  enlisted  in  the report.  While saying so, the Committee has taken the view that betting by Administrators, Players, Match  Officials,  Team  Officials,  Owners,  etc., should continue to be an offence under the BCCI and IPL Rules and Regulations. The Committee has made certain  recommendations  to  fulfill  the  need  to educate and sensitize young players and debutants about  the  game  ethics  and  the  need  to  inculcate discipline  and  integrity  among  players.   It  has additionally  suggested  certain  measures  like preparing  Cricketers  Handbook  for  young  players, arranging  lectures  and  interactions  with  cricket players and sport persons of unimpeachable integrity with regard to game ethics and also setting up of Integrity Unit consisting of former cricket players of repute, committed to the cause of cricket, to act as mentors for the young players.

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32. The  Committee  has  in  addition  recommended preparation of a database of undesirable elements (bookies,  fixers,  etc.,)  to  be  shared  with  the players and team officials.  It has also emphasized the need for verifying and ascertaining whether the person  controlling  the  prospective  franchisee  has any criminal antecedents.

33. In  Chapter  Ten  of  the  Report  the  Committee identifies several other problem areas that call for reform.   These  problems  have  been  identified  and elaborated  under  the  headings  ‘Membership  and Privileges, Posts and Tenures, Voting, Compliance, Expenditure  and  Infrastructure,  Lack  of Professionalism,  Dual  Posts,  Interference  in Selection  and  Transparency.   The  Committee  has, after an elaborate discussion under each one of the above headings, proposed solutions to the same in the following words:

“Solutions

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There  was  a  consistent  view  among respondents  to the  queries that  many of the  ills  befalling  Indian  cricket  find their roots in the State Associations and their  lack  of  administration.  The  root cause for the problem is that the BCCI is making substantial annual grants regarding which there is no oversight, and so the status quo remained as it was, with little effort by the provincial administrators.  

Therefore, it is necessary that there is uniformity  in  the  constitution  and functioning  of  the  various  associations (without  any  office  being  created  for life), that membership of social clubs be divorced  from  the  administration  of cricket  which  is  a  sombre  task,  that cricketers be made members and have a say in governance and that management be made professional. The State Associations must also create avenues to generate revenue, improve  infrastructure  and  develop  the sport, all of which will be marked through a detailed report card. There also has to be an audit and independent oversight of how resources are allocated and spent. It is necessary that all State Associations immediately  transition  to  the  use  of tamper-proof  accounting  software  which either  does  not  permit  alterations  or which records all alterations made.

The conflicts that arise by holding office both  at  the  BCCI  and  in  the  State Associations ought to be brought to an end by automatic vacation of post at the local level  when  elected  to  the  BCCI.  Also, certain disqualifications have to be laid down that apply to those who seek office in  the  State  Associations,  along  with

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limits  on  their  tenures  and  terms. Corrective measures are to be brought into place so that professional managers will interface with the State Governments and attempt  to  rectify  any  prevailing shortfalls  or  drawbacks  as  far  as infrastructure  and  permissions  are concerned.   

The  electoral  process  will  have  to  be transparent and independent, for which an Electoral  Officer  (a  retired  Central  or respective  State  Election  Commissioner) will have be appointed. In the event that no  such  person  is  available,  any  other former  State  Election  Commissioner, preferably from a neighbouring State may be appointed. This officer would conduct and  supervise  the  entire  process  of elections from the filing of nominations to  the  declaration  of  results  and  the resolution of any disputes and objections during the election.  

It  is  also  necessary  to  have  an independent  selection  committee  in  which the  Governing  body  of  the  State Association will have no say, and also for the  cricket  committees  manned  only  by former players to have an independent say on  coaching  and  evaluation  of  team performance, apart from the selection of players.  

The  policies  of  BCCI  regarding  dispute resolution  and  Conflict  of  Interest,  as well as the norms for Agents’ Registration will  have  to  apply  to  the  State Associations  as  well.  In  order  to administer this, the associations may also appoint  an  Ombudsman-cum-Ethics  Officer. It  would  be  open  to  multiple  States  to

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have a single Ombudsman / Ethics Officer so as to reduce expenditure. The person so appointed shall be an eminent person well versed  in  adjudicatory  processes  and  it will  be  his/her  task  to  decide  all disputes between the Association and any of  its  constituents  (Districts,  Clubs, etc.),  or  between  the  constituents,  or complaints of any player or member of the public,  by  following  the  principles  of natural  justice  before  rendering  a decision.       

As Ethics Officer, it shall be his duty to administer the principles of Conflict of Interest and recommend such action as may be deemed fit as far as an Office Bearer, Employee, Player, Team Official or other individual  connected  to  the  State Association is concerned. Needless to say, if it is an issue that concerns the BCCI as well, the Ethics Officer of the BCCI shall  proceed  to  decide  the  issue.  The Ethics  Officer  shall  also  decide  all issues  concerning  the  violation  of  the Agents’  Registration  norms  as  far  as players of the State are concerned.   

Each  State  Association  will  necessarily have a website that carries the following minimum details:

a. The  Constitution,  Memorandum  of Association  and  Rules  &  Regulations, Bye-Laws and Office Orders and directions that  govern  the  functioning  of  the Association, its Committees, the Ombudsman and the Ethics Officer.

b. The list of Members of the Association as well as those who are defaulters.

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c. The annual accounts & audited balance sheets  and  head-wise  income  and expenditure details.  

d. Details  of  male,  female  and differently abled players representing the State at all age groups with their names, ages and detailed playing statistics.

e. Advertisements  and  invitations  for tenders  when  the  Association  is  seeking supply of any goods or services (exceeding a  minimum  prescribed  value),  or  notices regarding  recruitment,  as  also  the detailed  process  for  awarding  such contracts or making such recruitments.  

f. Details  of  all  goals  and  milestones for developing cricket in the State along with timelines and the measures undertaken to achieve each of them.

g. Details  of  all  office  bearers  and other  managerial  staff  (including  CEO, COO, CFO, etc.)  

h. Details  of  directives  from  the  BCCI and their compliances.

These websites will have to be maintained and updated at least on a quarterly basis. All the above information will have to be maintained at the registered office of the State  Association  and  when  sought,  the same shall be shared with the applicant on the payment of a reasonable fee, as may be prescribed by the Association.

The cost of construction of a stadium runs into  hundreds  of  crores.  On  the  other hand,  formation  of  a  cricket  playing ground costs a small fraction of the cost of a stadium. It makes more sense to have

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cricket playing grounds in each District, rather than having one or two stadia in a State. In fact, the Committee learns that some  members  are  merely  collecting  the grants from BCCI and depositing them in a Bank so as to accumulate sufficient funds necessary for taking up construction of a stadium. The result is some smaller States have neither a stadium nor well developed cricket  playing  grounds.  BCCI  should therefore encourage the State Associations to:

a. Have as many cricket playing grounds and  fields  instead  of  multiple  stadia, which will enable greater usage and access to greater number of players. b. Convert  existing  grounds  and  fields into  turf  wickets  so  that  international standard  facilities  are  made  available even from a young age. c. To make the existing stadia amenable to other sports by providing for alternate surfaces to be laid (Astroturf for hockey, Carpet  for tennis,  etc.) so  that income may be generated and there would be all round  development  of  sport,  care  being taken not to damage the pitch.  But they should  not be  used for  public functions where thousands will stomp on the ground.

The  above  recommendations  relating  to State  Associations  (Full  Members)  will also be applicable to the 4 associations relegated  to  the  category  of  Associate Members  and  who  are  entitled  to disbursement of the grant from the BCCI.”

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34. The reforms recommended by the Committee have been finally summed up under the heading “End of the Innings” in the following words:  

“END OF THE INNINGS

If there has been one unifying factor in India,  it  has  been  cricket.  From C.K.Nayudu to Virat Kohli, the 32 captains of India and the men they have led have been equally deified and vilified by the masses,  for  such  is  the  ability  of  the game to inflame passions. It is on behalf of  these devotees  of willow  and leather that this Committee submits this effort to edify the BCCI.  

In  an  effort  to  present  the recommendations made by the Committee in brief,  the  following  synopsis  of  our proposals are set out:

1. Membership  

‘One State, One Vote’

Only cricket Associations representing the States  would have  voting rights  as Full Members  of  the  Board,  thereby  ensuring equality among the territorial divisions. Any  other  existing  members  would  be Associate Members.

2. Zones  

‘Zones for Tournaments alone’

The Zones would be relevant only for the purpose  of  the  tournaments  conducted

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amongst themselves, but not for nomination to the governance of the Board or to the various Standing Committees.

3. State Associations

‘State  Associations  -  Uniformity  in Structure’   The  Associations  that  are  the  Members would  necessarily  have  to  restrict  the tenures  of  office  bearers  and  prescribe disqualifications,  do  away  with  proxy voting,  provide  transparency  in functioning, be open to scrutiny and audit by  the  BCCI  and  include  players  in membership and management. They would also have to abide by the conflict of interest policy  prescribed  by  the  Board,  and divorce  the  Association  from  the  social club, if any.

4. Office Bearer

‘Limited Tenures & Cooling Off’

While  all  the  existing  office  bearers (President,  Vice-President,  Secretary, Treasurer  and  Joint  Secretary)  are retained in honorary positions, the number of Vice Presidents is pruned from five to one. Their duties have been realigned. The President  is  shorn  of  his  say  in selections.  The  additional  vote  for  the President  at  meetings  is  deleted.  The terms of these Office Bearers continue to be of 3 years, but with a maximum of 3 such  terms regardless  of the  post held, with a cooling off period after each such term.    

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5. Governance ‘Governance separated from management’

The  14  member  Working  Committee  is replaced by a 9 member Apex Council (with one-third independent members) consisting of  the  Office  Bearers  of  the  BCCI,  an elected  representative  of  the  General Body, two representatives of the Players Association  (one man  and one  woman) and one nominee from the C&AG’s office. Terms of  eligibility  and  disqualification  are specified  with  a  bar  on  Ministers  and government servants.  

6. Management ‘Professionalism in management’

Professionalism  is  brought  in  by introducing a CEO with strong credentials assisted by a team of managers to handle non-cricketing  affairs.  The  large  number of Standing Committees and Sub-Committees created by the BCCI has been reduced to two essential ones that would advice the CEO  with  reference  to  tours,  technical aspects and tournaments.

The  selection,  coaching,  performance evaluation and umpiring are to be handled by  Cricket  Committees  manned  only  by former professionals. Specific provisions have  been made  to encourage  cricket for women and the differently-abled.  

7. The IPL

‘Limited Autonomy for IPL’

The  Governing  Council  of  the  IPL  is reduced  to  9,  but  includes  2 representatives  of  the  Franchisees  and

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nominees of the Players’ Association and the C&AG’s office.  

8. Players  ‘A voice for Players’

There  shall  be  a  Cricket  Players’ Association  affording  membership  to  all international and most first class men and women retired cricketers. This Association shall  discharge  assigned  functions  with the  financial  support  of  the  BCCI.  It shall  be  brought  into  existence  by  an independent steering committee.  

9. Agents ‘Arms length for agents’

Players’  interests  are  protected  by ensuring that their Agents are registered under the prescribed norms administered by the  BCCI  and  the  Players’  Cricket Association.

10. Conflict of Interest ‘Avoidance of conflicts’   Detailed  norms  have  been  laid  down  to ensure  there  is  no  direct  or  indirect, pecuniary or other conflict or appearance thereof in the discharge of the functions of those persons associated or employed by the BCCI, its Committees, its Members or the IPL Franchisees. These norms shall be administered by an Ethics Officer.

11. The  Ombudsman  and  the  Electoral Officer ‘Independent monitors’

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Provision  has  been  made  to  have  an independent  ombudsman  to  resolve grievances  of  Members,  Administrators, Players and even members of the public as per the procedures laid down. Similarly, an  independent  Electoral  Officer  to oversee  the  entire  electoral  process  is also mandated.  

12. Functioning  ‘Transparency’

The  BCCI  must  provide  the  relevant information  in  discharge  of  its  public functions.  All  rules  and  regulations, norms, details of meetings, expenditures, balance  sheets,  reports  and  orders  of authorities  are  to  be  uploaded  on  the website as well.  

13. Oversight ‘Accountability’

An independent auditor to verify how the Full  Members  have  expended  the  grants given to them by the BCCI, to record their targets  and milestones,  and to  submit a separate compliance report in this regard.

14. Betting & Match-fixing ‘Legalization  for  betting  and Criminalization for match-fixing’   A  recommendation  is  made  to  legalize betting  (with  strong  safeguards),  except for  those  covered  by  the  BCCI  and  IPL regulations.  Also  a  recommendation  for

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match/spot-fixing  to  be  made  a  criminal offence.  

15. Ethics for Players ‘Awareness and sensitization’

Provisions  to  be  made  for  lectures, classes, handbooks and mentoring of young players.  

The  Committee  fervently  hopes  that  this report will bring cricket fans back to the fold and put an end to regional excesses and  imbalances,  reign  by  cliques, corruption and red tape, all of which have harmed the game and the youngsters looking for nothing more than to take the field in flannels.”

35. In order to give the recommendations made by the Committee a practical shape, suitable amendments to the Memorandum of Association of BCCI and the Rules and Regulations have been suggested as Annexure ‘A’ to the Report. The Committee has, at the same time, proposed a code for the Cricket Players’ Association which  forms  Annexure  ‘B’  to  the  Report,  while Regulations for Registration of Players’ Agents have been set out at Annexure ‘C’ to the Report.

36. In response to the notice issued by this Court, the BCCI has filed an affidavit sworn by Shri Anurag

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Singh  Thakur,  Honorary  Secretary  of  the  BCCI  and currently President of BCCI in which the BCCI claims to  have  accepted  and  implemented  several recommendations made by the Committee.  In Para 6 of the  Affidavit  the  deponent  has  identified  the recommendations  accepted  by  BCCI  and  the  steps already  taken  by  it  or  those  being  taken  for implementation, in the following words:

“6.Of  the  recommendations  contained  in  the Report,  BCCI  has  accepted  and  has  either implemented or is implementing the following recommendations:

(a) Appointment of an Ombudsman:  The BCCI has  amended  its  Rules  and  Regulations  to provide for the appointment of an Ombudsman at every  Annual  General  Meeting  to  deal  with complaints of conflicts of interest and any act of indiscipline or misconduct or violation of any rules and regulations of the BCCI by an administrator.   Thus,  the  Ombudsman  now contemplated  by  the  amended  Rules  and Regulations of the BCCI effectively combine the functions of the Ethics Officer and the Ombudsman within the scope of the Ombudsman’s functions whilst omitting disputes between the BCCI and IPL franchisees, which are covered by existing arbitration agreements.  The Hon’ble Mr. Justice A.P. Shah, Former Chief Justice of the Delhi High Court, has been appointed as the Ombudsman and has taken cognizance of and disposed of several complaints already.  

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(b) Avoidance of Conflict of Interest:  The BCCI  has  formulated  Rules  on  Conflict  of Interest, pursuant to which several persons have  resigned  from  positions  on  account  of conflict of interest.  Any person can make a complaint to the Ombudsman regarding conflict of  interest.   The  Rules  on  Conflict  of Interest provide that every complaint shall be decided within a period of 30 (Thirty) days from  the  receipt  of  the  complaint  and  the decision of the Ombudsman shall be final and binding.  A copy of the Rules on Conflict of Interest  is  annexed  hereto  and  marked  as ANNEXURE-A  (pg.61 to 63) (c) Availability of Rules and Regulations on BCCI Website: All Rules and Regulations of the BCCI, Annual Reports along with the financial reports as well as details of all expenses above Rs.25 lakhs have been made available on the BCCI website.

(d) Introduction of Professional Management: BCCI  has  accepted  the  recommendation  to professionalise its management and introduce a two-tier structure.  The BCCI presently has four  General  Managers  viz.  (1)  Professor Ratnakar  Shetty  (General  Manager  – Administration), who has been associated with the administration of BCCI since 2003, first as the Executive Secretary and later as Chief Administrative Officer; (2) Dr. M.V. Sridhar (General Manager – Cricket Operations), who is a former Indian Cricketer and has served as the Hon. Secretary of the Hyderabad Cricket Association;  (3)  Mr.  Amrit  Mathur  (General Manager – Communication and Coordination), who is in charge of media and coordination with Government  of  India  (Sports  Ministry,  Home Ministry and External Affairs Ministry) and has been involved with the BCCI for over two decades  inter  alia  as  media  manager  on  a number of overseas tours; and (4) Mr. Dhiraj Malhotra  (General  Manager  –  Events  and Leagues),  who  has  worked  in  organizing  ICC

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World events for over a decade and was also associated with organizing a number of sports leagues including Indian Premier League, etc. A  head-hunting  agency  has  already  been appointed  for  the  purpose  of  identifying candidates for appointment as a CEO and a CFO.

(e) Limited Due Diligence of audited accounts of  State  Associations  for  finding  out  how associations  have  utilized  the  funds  made available by Board to State Associations: BCCI Rules  and  Regulations  have  been  amended  to empower BCCI to appoint an independent auditor to scrutinize the statements of accounts of members with regard to payments made by BCCI to such member and all further payments due to such  member  shall  be  released  after  the receipt  of  diligence  reports  by  the  BCCI. BCCI  immediately  engaged  agencies  like PricewaterhouseCoopers,  Deloitte  and  Grant Thorton to carry out due diligence of State Associations.   As  part  of  this  process,  a financial due diligence exercise is currently underway in respect of financial years ending 31st March 2014 and 31st March 2015.

(f) Measures  to  prevent  match-fixing/  spot fixing:   Although  BCCI  has  implemented  the Anti Corruption Code since 2012, the biggest obstacle that has been faced by BCCI in its endeavour to prevent match-fixing/ spot-fixing has  been  the  absence  powers  to  gather intelligence on the subject and/ or policing powers with the BCCI’s Anti Corruption Unit. For this reason, the BCCI has requested the Government  of  Maharashtra  to  establish  a sports integrity intelligence gathering unit under  the  joint  aegis  of  the  BCCI  and Maharashtra Police whilst offering to fund the costs of doing so, if required.  A copy of the letter dated 18th November 2015 addressed by the  BCCI  to  the  Hon’ble  Chief  Minister  of Maharashtra is annexed hereto and marked as ANNEXURE –B (pg.64 to 65)

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(g) Decentralisation  of  powers  with  the President:  By virtue of being the Chairman of the  Annual  General  Meetings  and  Special General Meetings of the BCCI, the President earlier had an independent vote (in addition to  a  casting  vote)  at  General  Meetings. Further,  any  dispute  as  to  admission  or rejection of a vote at General Meetings was earlier decided by the President.  BCCI Rules and Regulations have been amended to do away with the independent vote of the President at General Meetings.  Similarly, any dispute as to admission or rejection of a vote at General Meetings  will  now  be  decided  by  a  simple majority.

37. Having said that, the affidavit questions the wisdom  behind  the  one  State  one  Vote  principle evolved  by  the  Committee  and  claims  that  the membership structure of the BCCI is based on level of cricketing activity, which according to it has a more rational nexus with the objects of BCCI than geographical  limits  of  the  States  settled  on linguistic basis much after the BCCI was formed.

38. The  BCCI  asserts  equal  representation/  voting rights to each State irrespective of the level of cricketing activity therein is likely to result in a situation where States with little or no cricketing

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activity  will  abuse  their  representation/voting rights.   BCCI  also  pleads  legal  impediments  in disenfranchising  and/or  demoting  existing  Full Members  or  depriving  them  of  their  vested  rights while  assuming  that  it  will  not  induct  any  new member from the State which already has a member and will  induct  only  one  full  Member  provided  the requisite  criteria  is  satisfied.   BCCI  also expresses  difficulties  in  recognizing  one  of  the three existing members in the States of Gujarat and Maharashtra as representing the said States while converting  the  Membership  of  the  other  two  as associate members.

39. BCCI argues that there is no criteria on the basis of which it can decide as to which of the existing three members should be retained as a full member.  It is submitted that even assuming that the BCCI decides to retain one of the three existing full members as a full member, jurisdiction of any such retained member will extend to the entire State

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including the area over which the jurisdiction of the other two member from that State extends.  This would in-turn imply that apart from being relegated as an associate member, the remaining full members from  that  State  will  no  longer  be  in-charge  of cricketing  activities,  cricket  teams,  stadia  and players  within  their  respective  erstwhile jurisdictions.   It  would  thereby  disable  them  to field teams to participate in BCCI tournaments.   

40. BCCI  also  apprehends  that  infrastructure available  with  the  three  full  members  each  from Maharashtra  and  Gujarat  will  be  wasted  if  the recommendation of the Committee is accepted.  It is contended that Regulations 6(A) and 6(B) of BCCI’s existing  Rules  and  Regulations  lay  down  the procedures  and  criteria  for  admitting  any  new members based on levels of cricketing activity in their respective territories apart from provisions that provide for promotion of an Affiliate Member to an Associate Member as well as for promotion of an

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Associate Member to a Full Member to take care of the interests of all concerned.  This method is in tune  with  the  method  followed  by  International Cricket  Council  (for  short,  “the  ICC”)  where  a member has to reach a certain level in performance and infrastructure before it may be promoted to the next level.

41. BCCI has also faulted the proposed reduction in advertisement as the same will according to it have a crippling effect on the financial health of the Board and adversely impact its ability to carry out its  various  programmes.  Restricting  advertisements only  to  drinks,  lunch  and  tea  breaks  will substantially  de-value  the  broadcast  rights  and reduce the income of the BCCI as broadcasters will in that case pay a only fraction of the amount that they are now paying for the broadcast rights.  The affidavit traces the history of the growth of the activities of the BCCI and corresponding growth in its  finances.   Induction  of  a  nominee  of  the

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Comptroller and Auditor General of India (for short, “the CAG”) on the Management Committee/Apex Council has also been stoutly opposed by the BCCI.  Relying upon Article 2.9 (B) of the Memorandum and Articles of Association of the ICC it is urged that inclusion of nominee of the CAG would tantamount to Government interference in the administration of Cricket and would call for adverse action by the ICC against the BCCI.  Objections are also taken to the proposed induction  of  franchisee’s  representatives  in  IPL Governing Council.  The BCCI contend that there is a conflict of interest between representatives of IPL Franchisees and the Governing Council as the later decides  matters  such  as  player  retention  policy, posting of umpires for IPL matches, etc.  So also a prohibition  on  re-appointment  of  Members  of  the Managing Committee recommended by the Committee has been opposed by the BCCI on the ground that there is no  rationale  for  prohibiting  any  individual  from being  associated  with  the  management  of  the  BCCI beyond nine years particularly when there is an age

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cap of 70 years in the Report that is simultaneously sought to be imposed.

42. Prohibition  of  Association  of  Ministers/ Government  Servants/  Persons  holding  posts  in another  Sports  Body  in  honorary  capacity  as recommended by the Committee has also been opposed by the BCCI.  It is contended that the association of Government Servants and Ministers has benefitted the BCCI immensely and that all such persons work in purely  honorary  capacity.   Travel,  boarding  and lodging costs of such office bearers only are taken care of by the BCCI.  BCCI has also urged that the restriction on simultaneous holding of an office in a State association and the BCCI is unreasonable as senior citizens also make substantial contribution in sports as their counterparts in law, judiciary, public  life,  Parliament  etc.  As  regards  Players Association and Board representation, the BCCI has welcomed the suggestion of formation of a Players’ Association but opposed any funding by the BCCI as

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recommended  by  the  Committee.   It  has  also  not favored players’ representation in the Board on the ground that several players have in the past served as Office Bearers in the BCCI and State Association on  their  own  merit.   Dissolution  of  existing Committees too has been opposed by the BCCI.  In conclusion,  the  affidavit  filed  on  behalf  of  the BCCI submits that while the report seems to have achieved a very laudable objective the same is only recommendatory  and  ought  not  to  be  imposed  on  a society  formed  by  private  individuals  who  enjoy constitutional protection under Article 19 of the Constitution of India. It has also raised an issue that the Committee did not give a hearing to BCCI regarding the proposed recommendations. Although a questionnaire was sent to the office bearers of the BCCI  including  the  honorary  President,  honorary Secretary and the honorary Treasurer and even when the office bearers of the BCCI had appeared before the  Committee  to  explain  their  view  points,  the failure  of  the  Committee  to  put  the  proposed

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recommendations to the BCCI has, according to the BCCI,  denied  to  them  an  opportunity  to  represent against  the  same.   The  affidavit  finally acknowledges that BCCI has benefitted greatly from the report of the Lodha Committee and that it is committed to implementing the same to ensure greater professionalism,  transparency  and  accountability keeping  in  mind  the  underlying  objective  of betterment of cricket in India.  

43. Appearing for BCCI Mr. K.K. Venugopal, learned senior  counsel,  argued  that  although  BCCI  had received  a  questionnaire  and  although  the  office bearers of the BCCI also had extensive interaction with the Committee on several aspects concerning the subject matter of the proceedings, yet, justice and fairness  demanded  that  the  Committee,  before submitting its final recommendations to this Court, gave an opportunity to the BCCI to respond to the same.   The  recommendations,  according  to  Mr. Venugopal, came as a surprise to the BCCI and hence

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need to be turned down and the matter remitted back to  the  Committee  for  considering  the  response  of BCCI on each one of the issues covered by the same. It was contended that principles of natural justice demand that since BCCI was likely to be affected by the  acceptance  of  the  recommendations  a  fair  and reasonable  opportunity  to  oppose  such  of  them  as were not acceptable to was provided.  Inasmuch as the Committee had failed to follow that procedure and had made its recommendations unilaterally, the report  and  the  recommendations  deserved  to  be rejected.

44. There  is,  in  our  opinion,  no  merit  in  the submission of Mr.Venugopal.  The reasons are not far to  seek.   The  task  assigned  to  the  Committee  in terms  of  the  order  passed  by  this  Court  was  to examine the issues set out in the order and make suitable recommendations in that regard.  The task assigned was, in its very nature inquisitorial in which  the  Committee  was  supposed  to  hear  the

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concerned  stakeholders  including  the  BCCI  and formulate its views on various aspects concerning the  subject  matter  and  make  recommendations considered necessary for a more efficient, objective and transparent working of the BCCI.  The Committee comprising  some  of  the  finest  legal  minds  fully aware of the requirements of law and the need for adopting a fair and reasonable procedure, decided in its  wisdom  to  serve  a  questionnaire  upon  the stakeholders  soliciting  information,  apart  from holding several interactive sessions with them and all  those  who  wished  to  be  heard  in  the  matter including  representatives  from  the  State Associations,  Journalists,  Academicians,  Jurists, Public Figures etc.   The Committee has on the basis of  the  said  interactions  arrived  at  certain conclusions to which we have made reference at great length in the earlier part of this judgment.  Based on the said findings the Committee has recommended certain steps which, in its opinion, are necessary to  usher  in  structural  and  other  reforms  in  the

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working of the BCCI.  What is significant is that the  Committee  was  not  called  upon  nor  has  it adjudicated upon any right of the applicant finally. It has simply enquired into the working of the BCCI, identified its fault, its weaknesses, failures and shortcomings and suggested ways and means by which the same can be rectified.  The report submitted by the Committee is recommendatory in nature and does not  ipso facto oblige BCCI to accept the changes suggested therein unless so directed by the Court. That being so, any grievance based on the alleged violation of the principles of natural justice and failure of the Committee to put the recommendations proposed to be made before the BCCI for its response did not, in our opinion, constitute any substantive or  procedural  infirmity  that  could  vitiate  the report or the recommendations or call for a remand to the Committee.  Principles of natural justice, it is  well  settled,  are  not  codified  rules  of procedure.  Courts have repeatedly declined to lay down in a strait jacket, their scope and extent. The

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extent,  the  manner  and  the  application  of  these principles  depends  so  much  on  the  nature  of jurisdiction exercised by the Court or the Tribunal, the nature of the inquiry undertaken and the effect of any such inquiry on the rights and obligations of those before it.  The extent of the application of the principles also depends upon the fact situation of a given case.  The legal position is so well settled  that  we  do  not  consider  it  necessary  to burden this judgment by elaborating on the subject. Reference to the decisions of this Court in Viveka Nand Sethi v.  Chairman, J & K Bank Ltd.  (2005) 5 SCC, 337, S.L. Kapoor v. Jagmohan (1980) 4 SCC 379, State of Punjab v. Jagir Singh  (2004) 8 SCC 129, Karnataka SRTC v.  S.G. Kotturappa (2005) 3 SCC 409, Ravi S Naik v. Union of India (1994) supp. (2) SCC 641 and K.L. Tripathi v. SBI (1984) 1 SCC 43 should suffice.  

45. The fact that the Committee was appointed by this Court, for a specific purpose, the fact that

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the  Committee  comprised  distinguished  jurists familiar  with  the  requirements  of  fairness  and objectivity and the need for providing a hearing to any one likely to be affected, the fact that the Committee not only served questionnaire and heard all those who wished to be heard and the fact that the  report  of  the  Committee  was  not  ipso  facto binding  but  was  only  recommendatory,  completely excludes any chance of any prejudice to BCCI nor has any prejudice otherwise been demonstrated. The fact that we have heard BCCI on the recommendations made by the Committee also eliminates the possibility of any prejudice.  At any rate there was in the facts and circumstances no legal or procedural requirement for the Committee to draw up its recommendations on a  provisional  basis  and  then  finalise  the  report after considering the response of the BCCI.  The changes  proposed  by  the  Committee  remain  in  the realm of recommendations so long as they are not accepted by this Court and before we accept the same with or without modification, we have heard not only

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the BCCI but everyone who has come forward to be heard.  We, therefore, see no reason to remand the matter nor do we see any legal flaw in the procedure adopted by the Committee.  

46. It  was  then  argued  by  Mr.  Venugopal  that although several of the recommendations made by the Committee were sound and useful for improving the working of the BCCI and bringing greater efficiency and transparency, yet, several others were either legally  impermissible  or  unnecessary  apart  from being  impracticable  keeping  in  view  the  ground realities and the historical perspective in which the BCCI was founded. Mr. Venugopal, in particular, assailed the recommendations made by the Committee that each State in the country must be represented in the BCCI by an association as a full member.  It was  urged  that  while  the  BCCI  was  not  averse  to conceding  full  membership  to  an  association  duly recognized from each State in the country to give to the BCCI a truly national character, the Committee’s

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recommendations that multiple full members from the States  of  Gujarat  and  Maharashtra  should  be discontinued  and  two  members  each  from  both  the States reduced to associate membership of BCCI was neither  just  nor  legally  permissible.   It  was submitted  that  both  Maharashtra  and  Gujarat  have three full members in the BCCI, not only because the said members were founding members of the BCCI but also  because  they  had,  since  their  inception promoted  cricketing  activity  in  their  respective regions and fielded teams to compete in tournaments. Denying  to  any  one  of  the  said  six  members  the privilege  of  full  membership  of  the  BCCI  would, according to Mr. Venugopal, violate Article 19(1)(c) of the Constitution.  So also, the termination of the  membership  of  other  full  members  namely Association of Indian Universities, Railways Sports Promotion Board, Services Sports Control Board was also not justified having regard to the fact that these members had contributed to the development of cricketing activities in the country, although some

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of  them  did  not  have  any  territory  nor  did  they field teams. In support of his submission that the recommended change in the composition of BCCI would violate  Article  19(1)(c),   Mr.  Venugopal  placed heavy reliance upon the judgment of this Court in Damyanti Naranga v. The Union of India And Others, 1971 (3) SCR 840.

47. Mr. Kapil Sibal followed by Mr. Shyam Divan, Mr. Arvind  Datar,  Mr.  Maninder  Singh,  Mr.  B.H. Marlapalle,  counsel  appearing  for  the  intervening full members mentioned above, adopted the submission of  Mr.Venugopal  and  strenuously  argued  that  the proposed  change  in  the  composition  of  BCCI  would adversely affect the interest of those who had been members of the BCCI since the beginning, no matter some of them did not have a territory or a team to field,  while  some  of  them  did  not  receive  any monetary grant from BCCI and some others had club facilities other than cricketing activities.  It was urged that grant of membership or a vote in the BCCI

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to  each  State  of  the  country  may  be  a  laudable objective to ensure promotion of cricketing activity even in the States where the same has not, during the past 60 years or so, taken off, yet removal of those who have contributed to such activities in a big way apart from founding the BCCI itself cannot be justified.  

48. Mr.  Vikas  Mehta  appearing  for  the respondent-Cricket  Association  of  Bihar  and  Mr. Manish Tiwari appearing for Mr. Bishan Singh Bedi and Mr.Kirti Azad and Mr. Rajesh Mahale appearing for  U.T  Cricket  Association,  Chandigarh  contended that the recommendations made by the Committee are well meaning and could go a long way in reforming the BCCI structurally as well as professionally. It was urged that findings of the Committee regarding the ills affecting the BCCI have not been questioned by the BCCI or by any intervenor.  If those findings were  correct  as  they  indeed  are,  the  proposed reforms become inevitable and ought to be introduced

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to save the game from losing its popularity in the Indian sub continent. It was argued by Mr. Mehta that Article 19(1)(c), is in no way violated in case the recommendations made by the Committee in regard to the reform and the  composition of the BCCI are accepted and directed to be implemented.    

 

49. We have given our anxious consideration to the submissions  made  at  the  Bar.   We  may,  before adverting to the rival submissions urged before us, point out two distinct aspects that need to be kept in mind while addressing the issues raised before us.  The first is that the proceedings that led to the  setting-up  of  the  Committee  arose  out  of  a public interest petition.  The directions issued by this Court proceeded on a clear finding recorded by this Court that even when BCCI is not a state within the meaning of Article 12 of the Constitution of India, it is amenable to the jurisdiction of the High  Court  since  it  discharges  public  functions.

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That  part  of  the  controversy  stands  concluded  by judgment  of  this  Court  in  the  earlier  round  and cannot be reopened no matter Mr. Venugopal made a feeble attempt to do so by making a reference to the Constitution  Bench  judgment  of  this  Court  in  Zee Telefilms Ltd. v.  Union of India (2005) 4 SCC 649. All that we need mention is that while holding BCCI to  be  amenable  to  the  writ  jurisdiction  of  the Courts, we have taken note of the pronouncement of this Court in Zee Telefilms case (supra).  This is evident from the following passages:

“29.  It  was  then  argued  that  the  Board discharges  public  duties  which  are  in  the nature of State functions. Elaborating on this argument it was pointed out that the Board selects  a  team  to  represent  India  in international matches. The Board makes rules that  govern  the  activities  of  the  cricket players, umpires and other persons involved in the activities of cricket. These, according to the petitioner, are all in the nature of State functions and an entity which discharges such functions can only be an instrumentality of State, therefore, the Board falls within the definition of State for the purpose of Article 12. Assuming that the abovementioned functions of the Board do amount to public duties or State  functions,  the  question  for  our consideration is: would this be sufficient to hold the Board to be a State for the purpose

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of Article 12. While considering this aspect of the argument of the petitioner, it should be borne in mind that the State/Union has not chosen the Board to perform these duties nor has it legally authorised the Board to carry out  these  functions  under  any  law  or agreement.  It  has  chosen  to  leave  the activities  of  cricket  to  be  controlled  by private  bodies  out  of  such  bodies'  own volition  (self-  arrogated).  In  such circumstances when the actions of the Board are  not  actions  as  an  authorised representative of the State, can it be said that the Board is discharging State functions? The answer should be no. In the absence of any authorisation, if a private body chooses to discharge  any  such  function  which  is  not prohibited by law then it would be incorrect to hold that such action of the body would make it an instrumentality of the State. The Union of India has tried to make out a case that  the  Board  discharges  these  functions because of the de facto recognition granted by it to the Board under the guidelines framed by it but the Board has denied the same. In this regard we must hold that the Union of India has  failed  to  prove  that  there  is  any recognition by the Union of India under the guidelines framed by it and that the Board is discharging these functions on its own as an autonomous body.

xxx xxx xxx

31. Be that as it may, it cannot be denied that the Board does discharge some duties like the  selection  of  an  Indian  cricket  team, controlling the activities of the players and others involved in the game of cricket. These activities can be said to be akin to public duties or State functions and if there is any violation of any constitutional or statutory obligation or rights of other citizens, the aggrieved party may not have a relief by way

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reforms will cause any injustice either to the cause of the game or to those who have been associated in promoting the same.

51. With the above two aspects in mind, let us now examine whether the recommendations of the Committee have the tendency to violate Article 19(1)(c) or any other provision of the Constitution.   

52. Article 19(1)(c) of the Constitution of India guarantees to the citizens of this country the right to  form  associations,  unions  or  cooperative societies.  It reads:

“19.  Protection  of  certain  rights  regarding freedom of speech, etc. – (1) All citizens shall have the right –  (a) xxx xxx xxx (b) xxx xxx xxx (c) to form associations or unions or  cooperative societies (d) xxx xxx xxx (e) xxx xxx xxx (f) xxx xxx xxx (g) xxx xxx xxx”

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53. The  right,  it  is  evident  from  the  above,  is guaranteed in favour of citizens and citizens alone. Recourse to Article 19(1)(C) is not, therefore, open to juristic or other persons and entities who are non-citizens.  Confronted with this position, it was argued  on  behalf  of  the  BCCI  and  intervening associations  that  even  when  the  provisions  of Article 19(1)(c) may not be available to the State Cricket Associations who are members of BCCI , yet the  recommendations  made  by  the  Committee,  if accepted,  would  prejudicially  affect  the  citizens who  have  come  together  to  form  such  State associations. It was contended that this Court could in its discretion lift the veil to determine whether the right of any citizen/citizens was affected and grant  suitable  relief  if  the  answer  was  in  the affirmative. It was contended that once this Court decides  to  do  so  it  will  find  that  citizens comprising the State Cricket Associations are the ones  actually  affected  by  the  recommendations  in question.   

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54. We regret our inability to accept the submission so vehemently urged before us by learned Counsel for the BCCI and the State Cricket Associations.  We say so, firstly because no citizen has come forward in the present proceedings or in the earlier round to complain of the violation of any fundamental right guaranteed  under  Article  19(1)(c)  of  the Constitution.  Secondly and more importantly because the recommendations do not, in our opinion, affect the composition of the State Cricket Associations in any manner. Citizens who have come together to form the  State  Associations  continue  to  associate  as before with no change in their internal composition. If that be so as it indeed is the right guaranteed under  Article  19(1)(c)  stands  exercised,  which exercise would continue to enjoy the protection of the  constitutional  guarantee  till  the Association/Union  or  co-operative  Society,  as  the case may be, continues to exist. What is, however, important is that the right under Article 19(1)(c)

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does not extend to guaranting to the citizens the concomitant right to pursue their goals and objects uninhibited by any regulatory or other control.  The legal position in this regard is settled by several decisions of this Court to which we may gainfully refer at this stage.

55. In All India Bank Employees Association v. The National Industrial Tribunal (Bank Disputes), Bombay

and Ors.,  AIR 1962 SC 171 a Constitution Bench of this  Court  while  explaining  the  scope  of  Article 19(1)(c)  drew  a  distinction  between  the  right  to form an association/union and the right to carry on any such business or other activity chosen by such union  or  Association.   This  Court  declared  that while  the  right  to  form  a  union/Association  is guaranteed under Article 19(1)(c), the concomitant right of the members of the Association/Union would be governed by other provisions of Article 19.  This Court held:

“If an association were formed for the purpose of carrying on business, the right to form it

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would  be  guaranteed  by  sub-clause  (c)  of clause (1) of Article 19 subject to any law restricting that right conforming to clause (4) of Article 19.  As regards its business activities, however, and the achievement of the  objects  for  which  it  was  brought  into existence,  its  rights  would  be  those guaranteed by sub-clause (g) of clause (1) of Article 19 subject to any relevant law on the matter conforming to clause (6) of Article 19; while  the  property  which  the  association acquires or possesses would be protected by sub-clause (f) of clause (1) of Article 19 subject to legislation within the limits laid down by clause (5) of Article 19.

While  the  right  to  form  a  union  is guaranteed by sub-clause (c), the right of the members of the association to meet would be guaranteed by sub-clause (b), their right to move  from  place  to  place  within  India  by sub-clause (d), their right to discuss their problems  and  to  propagate  their  views  by sub-clause (a), their right to hold property would be that guaranteed by sub-clause (f) and so on – each of these freedoms being subject to  such  restrictions  as  might  properly  be imposed by clauses (2) to (6) of Article 19 as might be appropriate in the context.  It is one thing to interpret each of the freedoms guaranteed by the several articles in Part III in  a  fair  and  liberal  sense,  it  is  quite another  to  read  each  guaranteed  right  as involving  or  including  concomitant  rights necessary to achieve the object which might be supposed  to  underlie  the  grant  of  each  of those rights….”

56. In Tata Engineering and Locomotive Company Ltd. v.  State  of  Bihar,  AIR  1965  SC  40 this  Court

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reiterated that Article 19 applies to citizens and not persons as was the position with Article 14 of the  Constitution.   The  effect  is  that  the provisions of Article 19 can be claimed by citizens only and not by corporations.  This Court held that the  fundamental  right  to  form  an  association  or Union cannot be coupled with the fundamental right to  carry  on  any  trade  or  business.  As  soon  as citizens formed a company, the right guaranteed to them by Article 19(1)(c) stood exercised.  After the  incorporation  of  the  company  the  business carried on by it is the business of the corporation and not the business of the citizen.  The Court held:

“28. That being the position with regard to the doctrine of the veil of a corporation and the principle that the said veil can be lifted in some cases, the question which arises for our decision is; can we lift the veil of the petitioner and say that it is the shareholders who are really moving the Court under Article 32, and so, the existence of the legal and juristic separate entity of the petitioners as a corporation or as a company should not make the petitions filed by them under Article 32 incompetent. We do not think we can answer this question in the affirmative. No doubt,

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the complaint made by the petitioners is that their fundamental rights are infringed and it is a truism to say that this Court as the guardian  of  the  fundamental  rights  of  the citizens will always attempt to safeguard the said fundamental rights; but having regard to the decision of this Court in  State Trading Corporation of India Ltd.1, we do not see how we can legitimately entertain the petitioners’ plea  in  the  present  petitions,  because  if their plea was upheld, it would really mean that what the corporations or the companies cannot achieve directly, can be achieved by them indirectly by relying upon the doctrine of lifting the veil. If the corporations and companies are not citizens, it means that the Constitution intended that they should not get the  benefit  of  Article  19.  It  is  no  doubt suggested  by  the  petitioners  that  though Article  19  is  confined  to  citizens,  the Constitution-makers may have thought that in dealing  with  the  claims  of  corporations  to invoke the provisions of Article 19, courts would act upon the doctrine of lifting the veil and would not treat the attempts of the corporations in that behalf as falling outside Article 19. We do not think this argument is well founded. The effect of confining Article 19 to citizens as distinguished from persons to whom other Articles like 14 apply, clearly must be that it is only citizens to whom the rights under Article 19 are guaranteed. If the legislature  intends  that  the  benefit  of Article 19 should be made available to the corporations, it would not be difficult for it to adopt a proper measure in that behalf by enlarging  the  definition  of  “citizen” prescribed by the Citizenship Act passed by Parliament by virtue of the powers conferred on it by Articles 10 and 11. On the other hand, the fact that the Parliament has not chosen to make any such provision indicates that it was not the intention of Parliament to treat corporations as citizens. Therefore, it

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seems to us that in view of the decision of this  Court  in  the  case  of    State  Trading Corporation of India Ltd.  1  , the petitioners cannot be heard to any that their shareholders should  be  allowed  to  file  the  present petitions on the ground that, in substance, the  corporations  and  companies  are  nothing more  than  associations  of  shareholders  and members thereof. In our opinion, therefore, the argument that in the present petition we would be justified in lifting the veil cannot be sustained.

29. Mr Palkhivala sought to draw a distinction between the right of a citizen to carry on trade  or  business  which  is  contemplated  by Article  l9(1)(g)  from  his  right  to  form associations or unions contemplated by Article l9(1)(c).  He  argued  that  Article  19(1)(c) enables  the  citizens  to  choose  their instruments  or  agents  for  carrying  on  the business which it is their fundamental right to carry on. If citizens decide to set up a corporation or a company as their agent for the purpose of carrying on trade or business, that is a right which is guaranteed to them under Article 19(1)(c). Basing himself on this distinction between the two rights guaranteed by Article l9(1)(g) and (c) respectively, Mr Palkhivala somewhat ingeniously contended that we  should  not  hesitate  to  lift  the  veil, because by looking at the substance of the matter, we would really be giving effect to the  two  fundamental  rights  guaranteed  by Article l9(l). We are not impressed by this argument either. The fundamental right to form an  association  cannot  in  this  manner  be coupled with the fundamental right to carry on any trade or business. As has been held by this  Court  in  all-India  Bank  Employees’ Association v.  National Industrial Tribunal, the  argument  which  is  thus  attractively presented before us overlooks the fact that

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Article 19, as contrasted with certain other articles  like  Articles  26,  29  and  30 guarantees rights to the citizens as such, and associations  cannot  lay  claim  to  the fundamental rights guaranteed by that article solely  on  the  basis  of  their  being  an aggregation of citizens, that is to say, the right of the citizens composing the body. The respective rights guaranteed by Article 19(1) cannot  be  combined  as  suggested  by  Mr Palkhivala, but must be asserted each in its own way and within its own limits; the sweep of the several rights is no doubt wide, but the combination of any of those two rights would not justify a claim such as is made by Mr  Palkhivala  in  the  present  petitions.  As soon  as  citizens  form  a  company  the  right guaranteed  to  them  by  Article  l9(l)(  c  )  has been  exercised  and  no  restraint  has  been placed on that right and no infringement of that  right  is  made.  Once  a  company  or  a corporation is formed, the business which is carried on by the said company or corporation is the business of the company or corporation and is not the business of the citizens who get  the  company  or  corporation  formed  or incorporated,  and  the  rights  of  the incorporated  body  must  be  judged  on  that footing and cannot be judged on the assumption that they are the rights attributable to the business of individual citizens. Therefore, we are satisfied that the argument based on the distinction between the two rights guaranteed by Article l9(l)(c) and (g) and the effect of their combination cannot take the petitioners’ case very far when they seek to invoke the doctrine  that  the  veil  of  the  corporation should be lifted. That is why we have come to the conclusion that the petitions filed by the petitioners are incompetent under Article 32, even though in each of these petitions one or two  of  the  shareholders  of  the  petitioning companies or corporation have joined.”

 (emphasis supplied)

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57. In D.A.V. College v. State of Punjab, 1971 (2) SCC 269 this Court was examining the validity of a legislation  that  provided  for  compulsory affiliation  of  religious  or  linguistic  minority institutions to the University.  It was contended that the requirement of compulsory affiliation was in  violation  of  their  right  of  freedom  of association  guaranteed  under  Article  19(1)(c). This court, however, rejected that contention and held that the notification providing for compulsory affiliation  with  the  University  did  not  in  any manner interfere or attempt to interfere with the petitioners’  right  to  form  an  association  under Article 19(1)(c).   This Court said :

“29. It  is  contended  that  the  compulsory affiliation  of  the  petitioners  to  the University affects their fundamental right of freedom  of  association  as  guaranteed  under Article 19(1)(c), therefore the notification under  Section  5(3)  affiliating  them  to  the University is bad. It is also urged that since the words “associated with and admitted to any privileges” are used in Section 5 of the Act, it  would  mean  that  petitioners  are

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compulsorily formed into an Association with the  University.  This  contention  however  is countered  by  the  respondents  who  point  out that the freedom of association under Article 19(1)(c) implies association between citizens while in the case of the petitioners what is sought to be affected is an affiliation with the University which is a corporate body.

30. The right to form an association implies that several individuals get together and form voluntarily an association with a common aim, legitimate purpose and having a community of interests. It was sought to be suggested that the compulsory affiliation with the University affects  the  aims  and  objects  of  the association, as such its freedom is infringed. There  is  in  our  view  a  fallacy  in  this argument which on earlier occasions had also been  repelled.  In  All  India  Bank  Employees Association v.  National Industrial Tribunal, it  was  observed  that  the  right  guaranteed under Article 19(1)(c) does not carry with it a  concomitant  right  that  the  Associations shall  achieve  their  object  such  that  any interference in such achievement by any law would be unconstitutional unless it could be justified under Article 19(4) as being in the interests  of  public  order  or  morality.  The right  under  Article  19(1)(c)  extends  inter alia to the formation of an Association or Union.”

58. In Smt. Damyanti Naranga v. the Union of India Ors., 1971 (1) SCC 678 heavy reliance whereupon was placed by Mr. Venugopal, also a Constitution Bench of this Court clearly held that the right to form an association implied that the person forming the

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association/Union had the right to continue to be associated  with  only  those  whom  they  voluntarily admit in the Association.  This Court declared that the right under Article 19(1)(c) was not confined to the initial stage of forming of an association for  any  such  restricted  interpretation  of  that provision would render the right meaningless in a situation  where  no  sooner  the  association  is formed,  a  law  is  passed  interfering  with  its composition so that the association formed may not be able to function at all.  This Court, in that view,  held  that  the  right  will  be  rendered ineffective until it is held to include the right to  continue  the  association/union  with  its composition  as  voluntarily  agreed  upon  by  the persons  forming  the  association.   This  Court affirmed the view taken in its earlier decision in O.K. Ghosh and another v. E.X. Joseph, AIR 1963 SC 812, and observed:  

“6. It was argued that the right guaranteed by Article  19(1)(c)  is  only  to  form  an

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association and, consequently, any regulation of the affairs of the Association, after it has been formed, will not amount to a breach of that right. It is true that it has been held by this Court that, after an Association has been formed and the right under Article 19(1)(c)  has  been  exercised  by  the  members forming it, they have no right to claim that its activities must also be permitted to be carried on in the manner they desire. Those cases  are,  however,  inapplicable  to  the present case. The Act does not merely regulate the  administration  of  the  affairs  of  the Society;  what  it  does  is  to  alter  the composition of the Society itself as we have indicated above. The result of this change in composition  is  that  the  members,  who voluntarily formed the Association, are now compelled  to  act  in  that  Association  with other members who have been imposed as members by  the  Act  and  in  whose  admission  to membership they had no say. Such alteration in the  composition  of  the  Association  itself clearly interferes with the right to continue to  function  as  members  of  the  Association which was voluntarily formed by the original founders. The right to form an association, in our  opinion,  necessarily  implies  that  the persons forming the Association have also the right to continue to be associated with only those  whom  they  voluntarily  admit  in  the Association.  Any  law,  by  which  members  are introduced  in  the voluntary  Association without any option being given to the members to keep them out, or any law which takes away the membership of those who have voluntarily joined it, will be a law violating the right to form an association. If we were to accept the submission that the right guaranteed by Article 19(1)(c) is confined to the initial stage of forming an Association and does not protect the right to continue the Association with  the  membership  either  chosen  by  the founders or regulated by rules made by the

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Association  itself,  the  right  would  be meaningless because, as soon as an Association is formed, a law may be passed interfering with its composition, so that the Association formed may not be able to function at all. The right can be effective only if it is held to include within it the right to continue the Association  with  its  composition  as voluntarily agreed upon by the persons forming the Association….”

59. Reference may also be made to a very recent decision of this Court in  Dharam Dutt and Ors. v. Union of India & Ors., (2004) 1 SCC 712. That was a case  where  the  constitutional  validity  of  the Indian Council of World Affairs Ordinance, 2001 was under challenge in a petition filed under Article 32 of the Constitution. One of the issues that came up  for  consideration  was  whether  the  legislation violated the right guaranteed under Article 19(1) (c).  Relying upon the decisions in  Maneka Gandhi v. Union of India, (1978) 1 SCC 248; All India Bank Employees’  Association  v.  National  Industrial

Tribunal, AIR 1962 SC 171 and; Damyanti Naranga v. Union of India,  1971 (1) SCC 678 this Court held that  the  right  under  Article  19(1)(c)  does  not

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include the right of the association or union so formed to achieve its objective whether of running an institution or otherwise. The Court said:

“From a reading of the two decisions, namely, Smt.  Maneka  Gandhi’s  case  (supra), (seven-Judges  Bench)  and  All  India  Bank Employees  Association’s  case  (supra), (five-Judges Bench), the following principles emerge : (i) a right to form associations or unions does not include within its ken as a fundamental right a right to form associations or unions for achieving a particular object or running  a  particular  institution,  the  same being  a  concomitant  or  concomitant  to  a concomitant of a fundamental right, but not the fundamental right itself. The associations or unions of citizens cannot further claim as a fundamental right that it must also be able to achieve the purpose for which it has come into existence so that any interference with such  achievement  by  law  shall  be unconstitutional,  unless  the  same  could  be justified  under  Article  19(4)  as  being  a restriction imposed in the interest of public order  or  morality;  (ii)  A  right  to  form associations guaranteed under Article 19 (1) (c) does not imply the fulfillment of every object  of  an  association  as  it  would  be contradictory  to  the  scheme  underlying  the text and the frame of the several fundamental rights guaranteed by Part III and particularly by the scheme of the guarantees conferred by sub-clauses  (a)  to  (g)  of  clause  (1)  of Article  19;  (iii)  While  right  to  form  an association is to be tested by reference to Article  19(1)(c)  and  the  validity  of restriction thereon by reference to Article 19(4),  once  the  individual  citizens  have formed  an  association  and  carry  on  some activity,  the  validity  of  legislation

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restricting the activities of the association shall  have  to  be  judged  by  reference  to Article  19(1)(g)  read  with  19(6).  A restriction  on  the  activities  of  the association  is  not  a  restriction  on  the activities of the individual citizens forming membership  of  the  association;  and  (iv)  A perusal  of  Article  19  with  certain  other Articles like 26, 29 and 30 shows that while Article 19 grants rights to the citizens as such, the associations can lay claim to the fundamental rights guaranteed by Article 19 solely  on  the  basis  of  there  being  an aggregation of citizens, i.e., the rights of the citizens composing the body. As the stream can  rise  no  higher  than  the  source, associations of citizens cannot lay claim to rights not open to citizens or claim freedom from  restrictions  to  which  the  citizens composing it are subject.”

(emphasis supplied)

60. There  is,  in  the  light  of  the  above authoritative pronouncements, no room for any doubt that  the  right  guaranteed  under  Article  19(1)(c) cannot be claimed by an association or union or a co-operative Society as is sought to be done in the case  at  hand,  even  when  the  right  to  form  an association or union or cooperative society extends to the continued existence of such association or union  or  cooperative  society  with  its  original

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voluntary  composition.   But  the  right  does  not extend so far as to include the right of any such association  or  union  or  cooperative  society  to achieve  its  objects  or  to  conduct  its  business unhindered  by  any  regulatory  or  other  control. Anything  beyond  the  protection  of  the  original composition  of  the  association  or  union  or cooperative society would fall outside Article 19(1) (C)  and  shall  be  governed  by  other  clauses  of Article 19 of the Constitution. For instance, the right  of  the  association  or  union  or  cooperative society  to  conduct  its  business  or  pursue  its objects shall be regulated under Article 19(1)(g) read with sub-Article (6) of the Constitution.  So also,  the  right  to  move  freely  throughout  the territory  of  India  shall  be  governed  by  Article 19(1)(d)  read  with  sub-Article  5  of  the Constitution.  Suffice it to say that so long as the initial voluntary composition of the State Cricket Associations who are complaining of the breach of their  right  under  Article  19(1)(c)  remains

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unaffected,  there  is  no  violation  of  what  is guaranteed by Article 19(1)(c).   

61. Seen  in  the  backdrop  of  the  above,  the recommendations made by the Committee in the instant do not interfere with or alter the composition of the  State  Associations.   Individual  citizens  who came together to form the State Associations have not been asked to discontinue their association nor do the recommendations impose upon their members an obligation to associate with others with whom they do not wish to associate.  Composition of the State Cricket Associations remain unaffected, and so does the right of those forming such Associations under Article  19(1)(c).  That  being  so,  the  grievance sought to be made on behalf of citizens who have formed  the  State  Associations  does  not  stand scrutiny no matter none of those on whose behalf the argument is advanced is before this Court to make any such grievance.  We have, in the light of the

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above, no difficulty in rejecting the first limb of the submissions made by learned counsel opposing the recommendation of the committee that BCCI shall have the Cricket Association from each State as a full member.  

62. That  brings  us  to  the  question  whether  “One State One vote” recommended by the Committee suffers from  any  legal  or  other  infirmity  sufficient  for this Court to reject the same. The recommendation made by the Committee has a two-fold impact on the current state of affairs in BCCI. The first is the reduction of some of the Associations and Clubs from the  full  membership  of  BCCI  to  the  status  of Associate  Members.  The  other  aspect  of  the recommendation  is  the  reduction  of  the  full membership of at least four existing full members to the status of associate members from the states of Maharashtra and Gujarat.  

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63. In the first category, fall five full members whose membership should as per the recommendation get  converted  to  associate  membership.  In  this category  fall  Railways  Sports  Promotion  Board, Association of Indian Universities, Services Sports Control Board, National Cricket Club (Kolkata) and Cricket Club of India (Bombay). The Committee has recommended that these clubs and associations need not  be  continued  as  full  members  as  they  do  not represent  any  geographical  territory.  Two  of  the clubs  namely  Cricket  Club  of  India  and  National Cricket Club do not even field teams in competitive cricket.  These  two  clubs  also  happen  to  be recreational clubs. The other three clubs mentioned above however field teams but do not receive any monetary assistance from BCCI. It was contended by learned counsel appearing for these clubs that the recommendation made by the Committee based entirely on the fact that they do not represent a territory does not do full justice to them while recommending deletion of their full membership from BCCI. It was

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submitted  that  even  when  these  clubs  do  not represent  any  geographical  area  and  some  of  them even do not field teams, they should be continued as full  members  keeping  in  view  the  historical background leading to the formation of BCCI.  We see no merit in that contention nor do we see any reason to  disagree  with  the  recommendation  made  by  the committee, who has upon a thorough consideration of all facts and circumstances relevant to the working of the BCCI, recommended the conversion of the clubs and  associations  without  a  territory  from  full members  to  associate  members.  This  is  a  measure which  has  been  recommended  with  a  view  to structurally streamlining the BCCI to make it more responsive  and  accountable  having  regard  to  the aspiration  of  different  regions  for  an  equal opportunity  to  participate  in  the  growth  and promotion of the game in the country. The fact that clubs including the Railways Sports Promotion Board, Association  of  Indian  Universities  and  Services Sports Control Board do not represent any region nor

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do  they  receive  any  monetary  benefit  is,  in  our view, a good enough reason for converting their full membership to associate membership. The conversion notwithstanding they shall continue to be associated with the growth and promotion of the game, the right to  vote  remaining  confined  to  full  members, representing  definite  geographical  regions  or territories.  The  recommendation  made  by  the committee regarding the conversion of the status of the  above  mentioned  clubs  and  associations  are, therefore, sound and are hereby accepted.

64. Coming to the second aspect of “One State One Vote”, it was argued by learned counsel appearing for  the  intervening  clubs  from  the  States  of Maharashtra  and  Gujarat  that  the  six clubs/associations three each from the two States viz. Mumbai Cricket Association, Maharashtra Cricket Association,  Vidarbha  Cricket  Association,  Gujarat Cricket Association, Baroda cricket Association and Saurashtra Cricket Association not only represent a

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definite  territory  and  participate  in  competitive cricket by fielding teams but have contributed to the development of the game in their regions. It was submitted  that  the  recommendations  made  by  the committee that BCCI should choose one of the clubs to  represent  the  entire  state  was  fraught  with difficulty  and  ignored  the  historical  perspective and  the  fact  that  the  these  clubs  had  made substantial  contribution  to  the  development  and promotion  of  cricket  in  this  country.  It  was, therefore, urged that reducing the role of four out of the six clubs from full membership to associate membership was not a sound proposition and deserved to be turned down and the associations allowed to continue their position as full members.  

65. The argument advanced by the intervenor clubs cannot be lightly brushed aside. It is not disputed that  three  different  regions  are  represented  by three distinct Associations both in the States of Gujarat and Maharashtra. This position has continued

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to  exist  from  the  inception.  Some  of  the clubs/associations,  if  not  all  are  the  founding members of BCCI. That being so, a balance has to be struck  with  historical  reality  and  the  need  for adopting  a  pragmatic,  uniform  and  principled approach aimed at reforming and rationalizing BCCI’s structural edifice. The recommendation made by the Committee to the extent it provides for one vote for each state is unexceptionable nor should there be any  compromise  with  what  is  proposed  as  a reformative measure. Even so the question is whether BCCI, in the peculiar situation prevalent in these two states, is in a position to recognize one of the three  Associations  representing  different territories  in  those  two  States  as  the  one  that would represent the entire State. Learned Counsel for  the  intervenors  and  so  also  Mr.  Venugopal counsel for BCCI are, in our opinion, justified in contending that the process of recognizing one out of three associations representing three different regions in those two states is fraught with several

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difficulties  and  would  result  in  long  drawn litigation  and  frustration  for  the  players  in particular and cricket lovers in general. What then is the way out of this conundrum. We had in the course of the hearing asked learned counsel for the parties,  if  it  would  be  possible  for  the  three associations to sync and unify their associations into  a  single  entity.   There  were  serious reservations expressed on that front and rightly so as each association is entitled today to field a team and receive monetary assistance. In the process of unification, the prospects of budding cricketers of these regions would go down substantially. That being so, the only reasonable and rational answer to the problem within the broad principle of One State One Vote would be to allow the full membership of BCCI to rotate among the three clubs on an annual basis.  During the period one of the associations would  exercise  rights  and  privileges  of  a  full member,  the  other  two  associations  would  act  as associate  members  of  BCCI.  This  rotational

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arrangement would give each member a right to vote at its turn without violating the broader principle of one State one vote recommended by the Committee. This  would  also  respect  the  historical  aspect  in which these associations grew to promote the game and form BCCI as a national body. Needless to say that the right of the association to field teams as before will remain unaffected subject to any changes that BCCI may make in its wisdom over a period of time. BCCI shall, however, decide the order in which the  membership  will  rotate  among  the  three associations in these two states. We make it clear that this arrangement of rotational membership shall continue till such time the clubs/Associations come together  to  form  a  single  entity,  if  such  a unification was to ever become a reality.  

66. It was next argued by Mr. Venugopal and counsel appearing for some of the interveners including Mr. Sampath,  counsel  for  the  Karnataka  State  Cricket Association  that  the  recommendation  made  by  the

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Lodha Committee as to the upper age limit of any office bearer is neither reasonable nor conducive to the development and promotion of the game in this country. It was submitted that some of the office bearers  continue  to  contribute  immensely  to  the development  and  promotion  of  cricket  even  though they have crossed the recommended upper age limit of 70  years.   For  instance,  Shri  Niranjan  Shah, applicant in Interlocutory Application No.24 is more than  70  years  old  but  has  held  the  office  of Secretary of Saurashtra Cricket Association for more than four decades.  This, according to the learned counsel, shows that age had nothing to do with the capacity  of  the  person  to  contribute  to  the promotion of the game.

67. Learned  counsel  appearing  for  the  interveners who support the recommendations of the Committee, on the  other  hand,  argued  that  those  playing competitive cricket are in the age group of 18 to 35 years which means that anyone who has played the

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game or who is actively connected with the game gets nearly 35 years to continue his active association with  the  game  even  after  he  has  retired  from competitive cricket which is a long enough period for  anyone  to  contribute  to  the  game  and  its promotion. It was also contended that the Government of India, have, in their wisdom prescribed the upper age  limit  of  70  years  for  office  bearers  of  the National Sports Federations in terms of the National Sports Development Code of India, 2011. The Sporting fraternity  has  accepted  the  same  as  a  reasonable upper age limit for anyone to hold office in any Sporting Federation. There is, in that view, nothing wrong with the recommendations of the Committee that those aspiring to hold any office in the BCCI or in the  State  Associations  ought  to  be  less  than  70 years old.   

68. There is no denying the fact that Cricketers who play competitive cricket generally fall in the age group  of  18  to  35  years.  This  implies  that  even

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after retirement from active cricket anyone who has the potential to contribute to the game can do so for over three decades till he attains the age of 70 years. The upper age limit recommended by the Lodha Committee  is  not,  therefore,  unreasonable  or irrational by any standard.  That apart, as rightly pointed  out  by  the  counsel  supporting  the recommendation, the Government of India have in the National  Sports  Development  Code  of  India,  2011, inter alia, stipulated that the President, Secretary and the Treasurer of any recognized National Sports Federation including the Indian Olympic Association (IOA) shall cease to hold that post on attaining the age of 70 years. The upper age limit of 70 years is not, therefore, an unusual or unacceptable norm so as to warrant our interference with the same. The recommendation made by the Lodha Committee regarding upper age limit for office bearers is accordingly accepted.  

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69. Mr.Venugopal, learned counsel appearing for BCCI and counsel for some of the interveners opposing the recommendations of the Committee also assailed the Committee’s  recommendation  that  Ministers  and Government Officials should be ineligible for any post in State Associations or in the BCCI.  It was contended that the restrictions sought to be placed on  the  Ministers  and  Government  Servants  are unreasonable. It was contended that past experience of the BCCI has shown that Government Servants and Ministers are able Administrators whose association with  BCCI  and  the  Associations  has  resulted  in substantial benefit to BCCI in the management of its affairs.  It  was  contended  that  office  bearers  in BCCI serve in an honorary capacity and without any remuneration for their services, except that travel, lodging and boarding arrangements are taken care of by  the  BCCI.   It  was  also  contended  that  the Government of India has been, as a matter of policy, encouraging  formation  of  Sporting  Associations  so that its employees are attracted towards sporting

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activities and promotion of sports and development of  sports  related  infrastructure.  Also  under challenge  is  the  recommendation  made  by  the Committee  that  those  holding  office  in  the  State Associations shall not be eligible for holding any office in BCCI and vice versa. It was contended that administrative experience acquired by anyone in the State Associations is useful to the BCCI which need not  be  lost  by  stipulating  a  disqualification recommended by the Committee.   

70. Learned counsel for the interveners supporting the recommendations, on the other hand, argued that the  recommendations  were  well  considered  and meaningful  and  in  the  interest  of  the  game  of cricket  in  this  country.   It  was  contended  that political  bigwigs  need  to  be  kept  away  from  the sporting  arena  not  only  because  the  presence  of Ministers  and  Civil  Servants  brings  several considerations not conducive to the promotion of the game, but, at times, results in creation of vested

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interests, groupism and rivalries that harm the game far  more  than  helping  it.  The  fact  that  the Ministers and Civil Servants have been helpful in promoting the game in the past does not mean that the game would cease to get their patronage if they are  disqualified  from  holding  any  office  in  the State  Associations  or  the  BCCI.  Whatever  the legitimate sporting patronage is required for the game  would  certainly  come  from  the  concerned supporters  regardless  whether  they  are  Ministers, Civil Servants or office bearers.  The contention urged on behalf of the BCCI that the restriction placed on the Ministers and Public Servants holding office would, in any manner, damage the cause of the game is, therefore, without any basis.  

71. The Lodha Committee has, in its meetings, held extensive  interactive  sessions  and  deliberations with  a  cross  section  of  stakeholders.  The recommendations made by the Committee are based on the  impressions  which  the  Committee  has  gathered

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from  such  interactions  and  deliberations.  In  the ordinary course and in the absence of any patent perversity  in  what  has  been  recommended  by  the Committee, this Court would be slow in interfering, especially  when  the  Committee  has  recommended comprehensive  restructuring  of  the  management  at different levels by proposing modification of the relevant rules and regulations.  The Committee has in its wisdom found that the holding of office by the  Ministers  and  Civil  Servants  in  the  State Associations or in the BCCI is not conducive to the health and promotion of the game.  The Committee has taken  the  view  that  the  game  would  be  better managed, promoted and developed if politicians and civil  servants  who  otherwise  occupy  positions  of responsibility in the Government that call for their complete and unstinted attention and commitment are made ineligible from holding any post in the State associations or the BCCI. The Committee has while making that recommendation observed:  

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“…  …  …  Any  elected  Councillor  shall  stand automatically disqualified after nine years as an  office  bearer,  and  shall  also  be disqualified from contesting or holding the post if he has completed the age of 70 years, is charged under the penal law, is declared to be  of  unsound  mind,  is  a  Minister  or government  servant  or  holds  any  post  of another sports body in the country.”

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b.  Posts & Tenures

…  …  …The  lack  of  any  qualifications  or disqualifications also ensures that those with full  time  occupations  superficially  involve themselves,  thereby  compromising  their commitment to the association and the game of cricket.  Several  public  servants  hold  lead positions in State Associations which take a substantial  toll  on  both  sets  of  their respective obligations to the public.”

72. In  light  of  the  above  we  see  no  compelling reason  for  us  to  reject  the  recommendation  which disqualifies  Ministers  and  Public  Servants  from holding offices in the State Associations or BCCI. The argument that since ministerial and bureaucratic support and patronage has helped the BCCI in running its affairs in the past they should be allowed to continue, lest the game suffers, has not impressed

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us. We do not think that the game flourishes in this country because any minister or civil servant holds office in the State Associations or BCCI.  We also do not find any basis for the argument that unless the ministers and civil servants are allowed to hold office in the State Association or in the BCCI they will refuse to do what is legitimately due to the game  for  its  development  and  promotion.   Nothing which is not due to the game or is not legitimate need be done by any Minister or Civil Servant. But we have no manner of doubt that what is legitimately due  to  the  game  will  not  be  denied  to  the  game merely because Ministers or Civil Servants do not happen to be office bearers for ought we know that there may be an overwhelming number of Ministers and Bureaucrats who are passionate about the game and would  like  to  do  everything  that  is  legally permissible and reasonably possible within the four corners of the law even without holding any office in  the  BCCI  or  the  State  Associations.  The contention that favours which the BCCI receives will

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disappear just because a Minister or Civil Servant is not an office bearer in the State Association or BCCI has no real basis to commend itself to us.  So also, the contention that it should be permissible to hold office simultaneously in BCCI and the State Association  has  not  commended  itself  to  us.  The Committee has while recommending abolition of dual posts observed:

g. Dual posts

Strangely, while conflict of interest issues have  been  at  the  heart  of  recent controversies, virtually all office bearers of the  BCCI  continue  to  be  office  bearers  in their  respective  State  Associations  at  the same time. Presidents and Secretaries of State Associations are to discharge functions with the primary interest of the State in mind, but as BCCI office bearers, these interests would have to be subordinated to that of national interest.  Often,  with  powers  centred  on  an office bearer, that individual has been found to appoint his State associates to critical posts  in  the  BCCI,  thereby  creating  an imbalance.   

73. There is nothing irrational about the view taken by  the  Committee.   The  argument  that  individuals should be eligible to hold two posts one each in the

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State  Association  and  the  BCCI  does  not  stand scrutiny in the light of the reasons given by the Committee which do not, in our opinion, suffer from any perversity to call for our interference.  

74. It was next contended on behalf of the BCCI that the  recommendations  made  by  the  Committee  for inclusion of a nominee of the Accountant General of the  State  in  the  Governing  Body  of  the  State Associations  and  a  nominee  of  the  Comptroller  & Auditor General of India (C&AG) as Member of the Apex Council in BCCI were both unacceptable to BCCI being unnecessary inflictions that were likely to result in the derecognition of the BCCI by the ICC. It was submitted that in terms of Article 2.9(b) of the  Memorandum  of  Association  and  Articles  of Association  of  the  ICC  any  interference  by  the Government in the administration of the Cricket by a member  would  render  the  latter  liable  to  be suspended  and  derecognized.   Induction  of  the nominee  of  the  Accountant  General  in  the  State

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Association  and  nominee  of  a  C&AG  in  the  Apex Council  of  the  BCCI  brings  in  an  element  of interference by the Government which would according to  the  counsel  for  BCCI  lead  to suspension/derecognition  of  the  BCCI.   Any  such induction was, therefore, not in the interest of the game of cricket or otherwise desirable keeping in view the fact that the BCCI cannot afford to run the risk of being derecognized or suspended by the ICC.

75. The Lodha Committee has, while dealing with the need for transparency and oversight, referred to the grievance made by the stakeholders that the BCCI was neither  fair  nor  transparent  and  those  who  seek greater information are either rebuffed by the Board or  won  over  by  enticements.  The  Committee  has noticed that the state of affairs prevailing in BCCI and  the  expenses  incurred  by  it  call  for  better financial management and financial prudence.  The Committee has observed:

“In  the  light  of  all  this,  the  Committee proposes that clear principles of transparency

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be laid down, and the BCCI website and office will carry all rules, regulations and office orders of the BCCI, the constitution of the various  committees,  their  resolutions,  the expenditures under various heads, the reports of  the    Ombudsman/Auditor/Electoral Officer/Ethics Officer and the annual reports and  balance  sheets.  In  addition,  norms  and procedures  shall  be  laid  down  for  the engagement  of  service  professionals  and contractors,  and  there  shall  be  full transparency of all tenders floated and bids invited  by  or  on  behalf  of  the  BCCI.  The website shall also have links to the various stadia with seating capacities and transparent direct ticketing facilities.

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The  Committee  also  believes  that  the Auditor be tasked not only with a financial analysis, but also specifically carry out a performance  audit  (Compliance  Report)  to determine whether the State associations have actually  expended  their  grants  towards  the development of the game and mark them on a report  card  which  will  be  utilized  to determine the due they deserve the following year. This oversight also needs to consider the high and unreasonable expenditures by the Board on various heads, which would have to be limited and streamlined.”

76. While dealing with the question of governance in Chapter  Two  of  the  Report  the  Committee  has recommended a Nine-Member Body as the Apex Council out of whom five shall be elected office bearers of

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the BCCI while four shall be Councillors one of them to be nominated by the C&AG.  The nominee of C&AG, shall,  in  the  opinion  of  the  Committee  bring transparency  and  oversight  in  monitoring  the finances of the BCCI.  It is in that background that the Committee has recommended in the draft Rules and Regulations/Memorandum  of  Association  the composition of the State Associations and the BCCI to include a nominee of the Accountant General of the  State  in  the  case  of  State  Associations  and nominee of C&AG as Member of the Apex Council in the case of the BCCI.  It is evident from a careful reading of the Report that the object underlying the induction of the nominees of the Accountant General of the State and the C&AG is to bring transparency and  financial  oversight  into  the  affairs  of  the State Associations and the BCCI. No one can possibly argue that the object sought to be achieved by the proposed  nominations  is  not  laudable  or  at  least desirable. Transparency and financial discipline and accountability are fundamental values to which any

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authority  discharging  public  functions  must  be committed  to.   To  that  extent  the  BCCI  has  not faulted the report made by the Committee.  What is all the same contended is that the recommendation if accepted  may  result  in  the  suspension  of  the recognition of the BCCI as it will be seen by the ICC as Government interference contrary to Article 2.9(B) of the ICC Rules, which reads as under:

“Where  a  government  interferes  in  the administration  of  cricket  by  a  Member, including but not limited to interference in operational  matters,  the  selection  and management  of  teams,  the  appointment  of coaches or support personnel or the activities of a Member, the Executive Board shall have the power to suspend or refuse to recognize that  Member,  subject  to  the  provisions  of Article 2.7.”

77. There is, in our view, no basis for the argument that any measure taken by the BCCI on its own or under the direction of a competent court specially when aimed at streamlining its working and ensuring financial  discipline,  transparency  and accountability  expected  of  an  organization

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discharging  public  functions  such  as  BCCI  may  be seen  as  governmental  interference  calling  for suspension/derecognition  of  the  BCCI.  Far  from finding  fault  with  presence  of  a  nominee  of  the Accountant General of the State and C&AG, the ICC would in our opinion appreciate any such step for the same would prevent misgivings about the working of the BCCI especially in relation to management of its  funds  and  bring  transparency  and  objectivity necessary  to  inspire  public  confidence  in  the fairness and the effective management of the affairs of the BCCI and the State Associations. The nominees recommended by the Committee would act as conscience keepers  of  the  State  Association  and  BCCI  in financial matters and matters related or incidental thereto which will in no way adversely impact the performance or working of the BCCI for the promotion and  development  of  the  game  of  cricket.   The criticism leveled against the recommendations of the Committee is, therefore, unfounded and accordingly rejected.  

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78. That brings us to the recommendation made by the Committee  regarding  the  formation  of  a  Players’ Association.   To  the  extent  the  recommendation provides for establishment of a Players’ Association neither the BCCI nor any other association who has intervened has found fault with the view taken by the Committee.  What has come under criticism by the BCCI  and  its  supporting  associations  is  the financial assistance which the BCCI is required to give to such an association.  On behalf of the BCCI it  was  contended  that  cricket  players  can  indeed form  an  association  which  they  are  in  any  case entitled to form, but that exercise need not be at the expense of the BCCI.  The recommendation for financial  support  to  the  association  is  thus  all that  has  been  faulted  by  the  BCCI.  It  was  also contended that there was no need for providing any representation  for  the  Association  in  the  Apex Council of the BCCI having regard to the fact that some of the cricketers had in the past held offices in  the  State  Associations  and  in  the  BCCI  by

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recourse to the democratic process, without any such reservation.   

79. There  are  three  distinct  aspects  of  the recommendation in question. One relates to formation of the Association itself; the second touches the financial support which the BCCI must provide to the Association  and;  the  third  deals  with  the representation given to the Association in the Apex Council.  Formation of the Association, as noticed earlier, is not under challenge and rightly so for cricket players have a fundamental right to form an association even independent of the recommendation. The question is whether the association needs to be financially supported by the BCCI.  The Committee has  recommended  such  financial  support  but  has stopped  short  of  specifying  the  extent  of  such support.   It  would,  therefore,  be  reasonable  to presume that the extent of financial support which the  association  may  be  given  is  left  to  the discretion of the BCCI.  If that be so, we do not

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see any merit in the objection raised by the BCCI that such support need not be given or would unduly burden the BCCI.  An association of cricket players would doubtless give to the cricketing community not only an opportunity to contribute to the promotion of the game but a sense of participation also so very  important  for  the  promotion  of  a  game  that brings so much joy and feelings of nationalism among our countrymen.  Financial support, to the extent possible, having regard to the resources available with the BCCI and its financial commitments in other areas  relevant  to  the  game  is  not  therefore  an unacceptable  idea.   The  recommendation  requiring financial support to the players association cannot therefore be rejected especially when the extent of such support is left to the BCCI to be decided on a fair and objective view of its financial resources and commitments.   

80. The  third  dimension  of  the  recommendation touching the representation given to the association

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also does not call for any interference. Players’ Association, it is obvious, would represent a very significant  and  important  segment  of  the stakeholders in the game.  Those who have played the game  and  are,  therefore,  better  equipped  to understand its nuances, its challenges and concerns relevant to its development and promotion cannot be left  out  from  the  management.  The  Committee  has recommended  two  positions  in  the  Apex  Council  as Councillors one of whom must be a female.  Keeping in view the numerical strength of the Apex Council, two nominees representing the Players’ Association will not unfavorably tilt the power balance within the Apex Council nor bring in any undesirable or extraneous element into the management of the BCCI. We have, therefore, no hesitation in rejecting the argument against the recommendation.  

81. That leaves us with three other recommendations of  the  Committee  to  which  we  may  advert  at  this stage.  Of these, two recommendations are in the

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nature  of  an  appeal  to  the  Parliament  to  enact suitable  statutory  provisions  which  the  Committee considers essential in public interest.  The first of these recommendations relates to the BCCI being under the purview of Right to Information Act and to carry  out  a  suitable  amendment  to  this  effect. While  the  second  recommendation  is  to  the  effect that  the  Parliament  ought  to  legalize  betting  in cricket.  Dealing with the first recommendation the Committee has observed:

“The Right to Information Act, 2005 (‘RTI Act’) enacts that public authorities shall make  known  the  particulars  of  the facilities available to citizens.  While the issue of the BCCI being amenable to the RTI Act is sub judice before the High Court of Madras in W.P.No.20229/2013, many respondents  who  appeared  and  interacted with the Committee were of the view that BCCI’s activities must come under the RTI Act.  Having regard to the emphasis laid by  the  Hon’ble  Supreme  Court  that  BCCI discharges public functions and also the Court’s reference to indirect approval of the  Central  and  State  Governments  in activities which has created a monopoly in the hands of the BCCI over cricket, the Committee  feels  that  the  people  of  the country have a right to know the details about the BCCI’s functions and activities. It  is  therefore  recommended  that  the legislature  must  seriously  consider

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bringing BCCI within the purview of the RTI Act.”

82. We are not called upon in these proceedings to issue any direction in so far as the above aspect is concerned. All that we need say is that since BCCI discharges  public  functions  and  since  those functions are in the nature of a monopoly in the hands of the BCCI with tacit State Government and Central Government approvals, the public at large has a right to know and demand information as to the activities and functions of the BCCI especially when it deals with funds collected in relation to those activities as a trustee of wherein the beneficiary happens to be the people of this country.  As a possible  first  step  in  the  direction  in  bringing BCCI under purview of Right to Information Act, we expect the Law Commission of India to examine the issue  and  make  a  suitable  recommendation  to  the Government.   Beyond  that  we  do  not  consider  it necessary to say anything at this stage.  

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83. So also the recommendation made by the Committee that betting should be legalized by law, involves the enactment of a Law which is a matter that may be examined by the Law Commission and the Government for such action as it may consider necessary in the facts and circumstances of the case.

84. The third recommendation which has given rise to some  debate  at  the  bar  touches  the  broadcast/ telecasting of sporting events hosted by the BCCI. The Committee appears to have taken the view that commercial expediency has overtaken the need for a neat telecast of the events for the benefit of the viewers. The Committee has observed :

“Commerce has also overtaken the enjoyment of  the  sport,  with  advertisement continuing  many  a  time,  even  after  the first  ball  and  again  commencing  even before  the  last  ball  of  the  over  is played, thereby interrupting the full and proper broadcast of the game.  Regardless of  the  wicket  that  has  fallen,  century having been hit or other momentous event, full liberty is granted to maximize the broadcaster’s income by cutting away to a commercial, thereby robbing sport of its

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most attractive attribute – emotion.  It is recommended that all existing contracts for international Test & One-Day matches be revised and new ones ensure that only breaks  taken  by  both  teams  for  drinks, lunch and tea will permit the broadcast to be interrupted with advertisements, as is the practice internationally.  Also, the entire  space  of  the  screen  during  the broadcast will be dedicated to the display of the game, same for a small sponsor logo or sign.”

85. BCCI has filed objections in so far as the above recommendations  are  concerned.   Firstly,  it  is stated  that  the  telecast/broadcast  of  the  game covers the entire over, namely, from the first ball to the last ball of the over and no part of the game’s  telecast  is  hampered  by  commercial exploitation  of  the  event.  The  second  contention urged  is  that  the  revision  of  contracts  already fixed  is  likely  to  result  in  serious  financial difficulties and other implication which will not be in the interest of the game.  It is also contended that any modification of the contractual terms and conditions at this stage is likely to result in a heavy  financial  loss  to  the  BCCI.   To  the  same

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effect  was  the  submission  which  Mr.  Venugopal, Counsel  appearing  for  the  BCCI  who  argued  that commercial aspect of the game could be best left to be considered by the BCCI and any change if at all called for could be introduced after the expiry of the existing contracts.  This was without prejudice to Mr. Venugopal’s submission that the pleasure of watching the game on television sets or on radios was  in  no  way  affected  by  the  commercial exploitation of the event.  

86. The Committee’s concern, it is evident from the passage  extracted  above  is  about  the  excessive exploitation of the commercial space granted to the broadcaster  and  in  the  process  affecting  the viewers’  ability  to  view  the  game  in  the  best possible  way.   The  Committee’s  recommendation  is obviously based on the premise that even the viewers have a right to view the game uninterrupted by any commercials and that the BCCI’s ability to encash the popularity of the game may be affected if the

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interest  of  the  viewers  and  resultantly  their numbers was reduced by excessive exploitation of the commercial space.  It is, however, difficult for us in  these  proceedings  to  authoritatively  pronounce upon the impact that the current contracts have on the  viewers  ability  to  enjoy  the  game  without interruption or the financial implication that may arise  in  case  the  contracts  are  modified  as recommended by the Committee. The proper course, in our opinion, is to leave the recommendation as it is for  the  consideration  of  the  BCCI  with  the observation  that  BCCI  may  keeping  in  mind  the sentiments expressed by the Committee ensure that the viewers get to see an uninterrupted broadcast of the match from the first till the last ball of the over and limiting the commercial advertisement in terms of time and space to an extent that will not deprive the viewers of the pleasure of watching the game in full.  We make it clear that we have not expressed any opinion in this regard and leave it for the BCCI to examine the matter from all possible

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angles and take a considered decision having regard to the recommendations made by the Committee and the feasibility  of  any  modification  in  the  existing contracts.

87. Last but not the least is the recommendation made by the Committee that the Governing Council of the IPL ought to be reconstituted so as to comprise three  ex-officio  members  of  the  BCCI  namely;  the Secretary,  the  Treasurer  and  the  CEO.   Two representatives of the Members of BCCI to be elected by  the  General  Body,  two  nominees  of  the  IPL franchisees and one nominee each to be nominated by the C&AG and from the Players’ Association.  The BCCI has objected to the recommendation in so far as same pertains to induction of two nominees of the franchisees.  The BCCI contends that the induction of  the  nominees  from  the  franchisees  is impermissible because important matters like players retention  policy,  posting  of  umpires  for  IPL matches, etc. are deliberated upon and decided by

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the Governing Council itself.  There is therefore an evident conflict of interest between the nominees of the IPL franchisees on the one hand and their role as members of the Governing Council on the other. The BCCI contends that this Court has set aside an amendment by which the BCCI had permitted persons affiliated with the franchisees to take part in the management of the IPL on the ground that the same violates the principle of institutional integrity. The  induction  of  the  representatives  of  the franchisee would however, bring about a conflict of interest which is neither permissible nor desirable.

88. The recommendation made by the Committee does not elaborately deal with the need for induction of the nominees of the IPL franchisees in the Governing Council.  All  that  is  said  is  that  the  Governing Council  has  denied  any  role  to  the  franchisee companies and that there is no independent voice in the Governing Council which is dominated by the full members of the BCCI and two former cricketers.  The

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Committee  does  not  appear  to  have  addressed  the question of conflict of interest in the event IPL franchisees  place  two  nominees  in  the  Governing Council keeping in view the fact that the Governing Council  takes  important  decisions  like  players retention policy and in posting of umpires for IPL matches etc.  There is prima facie a possibility of conflict of interest arising out of the franchisees representation in the Governing Council.  Be that as it may we do not consider it necessary to finally pronounce on this aspect which can be better left to the Committee to re-examine in the light of what has been observed earlier.  We make it clear that if upon  reconsideration  of  the  matter  the  Committee takes a view that the induction of the nominees of the franchisees will not result in any conflict of interest,  it  shall  be  free  to  stick  to  its recommendations in which event the recommendations shall be deemed to have been accepted by this Court to be formalized and carried out in such manner as the Committee may decide.

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89. We  may,  in  conclusion,  deal  with  two  other recommendations which have also come under criticism by the BCCI and the intervening associations.  The first of these recommendations proposes a cap on the number  of  terms  for  which  an  officer  bearer  can serve and the optimum period for which one can be a member of the apex council.  The recommendation also provides for cooling off period between two terms. It also prescribes grounds for disqualification of office  bearer  which  were  otherwise  absent  in  the existing rules and regulations of the BCCI. These recommendations come in the wake of a finding by the Committee that under the present dispensation office bearers could continue for any number of terms.  It was also noticed that no grounds for disqualifying an  office  bearers  were  prescribed.  The  Committee found both of these to be unacceptable and, in our opinion, rightly so. Given the problems that often arise on account of individuals holding office for any number of consecutive terms, the Committee was,

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in our opinion, justified in recommending the length of a term in office. A three year term recommended by the Committee is, in our opinion, reasonable.  So also, the prescription of cooling off period between two terms cannot be faulted. Similarly, an optimum period of 9 years as a member of the apex council cannot also be termed as unreasonable.  Grounds for disqualification  like  unsoundness  of  mind,  the member becoming a minister or holding a membership in any sporting body also meet the requirement of reasonableness and do not call for interference from the court.  The contention that the recommendations have no rationale or that the same are contrary to the  provisions  of  the  Tamil  Nadu  Societies Registration Act deserve notice only to be rejected.

90. The other recommendation which we may deal with is the overhaul of the existing Committees of the BCCI on the ground that they do not have clearly defined terms of reference. The Committee has on the basis of a thorough consideration and deliberation

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with all concerned recommended that the BCCI ought to adopt an approach that would institutionalize the management of its administrative affairs rather than such  affairs  being  run  on  an  ad-hoc  basis.  The Committee  has,  on  that  premise,  recommended  an administrative set up which it has evolved on the basis of its interactions with people who have the necessary expertise and insight into the needs of the BCCI and its associations. We, therefore, see no compelling  reason  for  us  to  reject  the recommendation  made  by  the  Committee,  especially when  the  objective  underlying  the  said recommendation is not only laudable but achievable through the medium of the change recommended by the Committee.

91. In the result, we accept the report submitted by the Committee and the recommendations made therein with such modifications and clarifications as have been set out by us in the body of this judgment. Having  said  that  we  must  hasten  to  add  that  the

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implementation  of  the  recommendations  is  equally important  and  ought  to  be  achieved  within  a reasonable period. The transition from the old to the new system recommended by the Committee shall have to be under the watchful supervision of this Court.  Constrains  of  time  and  the  multiple dimensions of the recommendations made however make it difficult for us to take that supervisory role upon ourselves. The supervision of the transition can, in our opinion, be left to be undertaken by the Committee  not  only  because  it  has  a  complete understanding of and insight into the nature of the problems sought to be remedied but also the ability to draw timelines for taking of steps necessary for the implementation of the proposed reforms. We are conscious  of  fact  that  the  process  may  be  time consuming  but  we  hope  that  the  same  should  be completed within a period of four months or at best six months from today. We, therefore, request the committee  headed  by  Justice  Lodha  to  draw appropriate  timelines  for  implementation  of  the

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recommendations  and  supervise  the  implementation thereof.   

92. Needless to say that the BCCI and all concerned shall cooperate and act in aid of the Committee and its directives. Should any impediments arise, the Committee  shall  be  free  to  seek  appropriate directions from this Court by filing a status report in that regard.   

93. The Committee shall be free to determine and direct payment of its fee for the time it devotes pursuant to this order.

94. With these observations we dispose of the matter finally placing on record our deep appreciation for the commendable work which the Committee has done in a  short  period.  We  also  place  on  record  our appreciation and gratitude to Mr. Gopal Subramanium,

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senior advocate, for lending valuable assistance to us as Amicus Curiae. No costs.

.....................CJI. (T.S. THAKUR)

.......................J. (FAKKIR MOHAMED IBRAHIM KALIFULLA)

NEW DELHI. JULY 18, 2016

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