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Where does all the money go and who is making it from the IPL?

Writing from Mumbai.

In a classic story of Indian business practice, the IPL commissioner Lalit Modi is being hauled over the coals for his alleged deal making in the IPL.

The Indian tax department has stormed the headquarters of the BCCI (Indian Cricket Board) for the first time in 60 years. This is to obtain documents relating to the IPL. They have seized Modi's laptop and records from his home and IPL offices.

All hell broke loose when it was alleged that Modi offered NZ$67.5 million to the owners of the new Kochi franchise to not accept the IPL team. This was so Modi could direct the franchise to Amhedabad in the state of Gujarat. Gujarat is a strong power base for Modi. Gujarat is known for its business and money men.

In this mire there is naturally politics in India. Modi is aligned to the opposition BJP party. The BJP are a Hindu right party and Gujarat is a BJP stronghold.

The present Congress government is secular. It includes all religions. Behind the scenes it was felt that there would be no new IPL franchise in a BJP state.

That is some of the background to the allegations surfacing against Modi. The powers that be in the BCCI are slowly sharpening their knives and the assassins are out doing the business.

A former mentor from Rajasthan who helped Modi get into the Rajasthan Cricket Association and then ousted him has sent some interesting tweets on the topic of Lalit Modi. I was told that to become the top man of Rajasthan Cricket would cost an individual about NZ$400,000.

His former mentor tweeted:
"What are the ingredients that make a gangster? Shouldn't drugs, corruption, forgery, impersonation and cricket be considered a deadly cocktail?"

"What is Elephant Capital and their composition and how are they connected with cricket? Elephant Capital was the company through which investments into cricket were routed.

"If you want photographs of our friend holidaying in Mexico with the 'Elephant Family' send an email request."
In the photo are the Modi clan and his son-in-law and sister-in-law's husband, all having received golden deals from the IPL.

IPL deals: alleged indiscretions by Modi

Rajasthan Royals franchise sold in 2008 for lowest figure of NZ$90 million despite other bidders. The bidders had no clue what to do as Modi handled everything. It is now worth NZ$303 million. Modi's brother-in-law won the bid.
Kings XI Punjab was won for NZ$102 million in 2008 despite other bidders. The co-owner is the brother of Modis son-in-law.
Kolkata was bought for NZ$101 million.
Allegedly Modi has stakes in all three franchises and winning bidders changed bids at the very last minute to just edge out opposition.
Modi's son-in-law of Global Cricket Ventures holds the digital and mobile rights for the IPL and Champions Trophy until 2017.

Many franchises and vendors of the IPL are based in tax havens like Mauritius

Modi was indicted in the USA in 1985 with four other Duke students for conspiracy to traffic cocaine worth $10,000. After the deal went south he was arrested on cocaine trafficking charges and assault with a deadly weapon with intent to kill. The victim turned up at the police station as a way of self preservation and revealed all.

Welcome to the world of the IPL.