What forced Maharashtra govt to give 60-85% retrospective discount to BCCI/State boards for security cover during matches?

[Trichromatic]

Little bit background here.

 

BCCI/State boards have to pay state govt for providing police security for IPL/ODI/Test/T20I and other matches.

 

Till June 2023, BCCI has been paying following charges to Maharashtra govt for police cover:

IPL match - 70 lakhs per match

T20I match - 70 lakhs per match

ODI match - 75 lakhs per match

Test match - 60 lakhs per match

 

In June 2023, Maharashtra govt revised these charges to:

IPL match - 10 lakhs per match (85% discount)

T20I match - 10 lakhs per match (85% discount)

ODI match - 25 lakhs per match (66% discount)

Test match - 25 lakhs per match (58% discount)

 

On top of that this discount was provided retrospectively which means these rates are applicable for future matches as well as for all matches in past 12 years.

 

Just for reference, currently BCCI earns approx 100 cr per IPL match.

 

My question to knowledgable posters here:

1. What forced Maharashtra govt to give discount to BCCI?

2. Why aren't charges going up when everything else is becoming expensive?

3. For a moment let's assume that charges were high and govt is now charging fair price, then what forced govt to give retrospective discount? Does any service provider give such retrospective discount in any field?

4. Is taxpayer money being given to BCCI with some sort of arrangment between BCCI and govt?

5. BCCI uses 1500-6000 policemen for hosting matches which means BCCI is being charged as low as INR 200-600 per policeman per match. Is this fair amount?

6. BCCI is earning heavily, so BCCI is more to lose if police cover is missing. Govt has upper hand, but with rate of discount it seems like BCCI has upper hand. What's the advantage BCCI is holding in this scenario?

7. Why is only Maharashtra government doing so?

 

Very curious case? What exactly happened this year?

 

[R!TTER]

The simple answer is that there's politicians running the show everywhere, specially in BCCI - an even simpler explanation is that ultimately we're footing the bills for this not any govt or BCCI babu. So the less they charge to BCCI the more they can pocked it probably directly through back channels!

[saneindian]

All about Pawar-play in the MCA/ BCCI administration.

 

Read this from October 2022 before the MCA elections.

 

 https://timesofindia.indiatimes.com/city/mumbai/on-pawars-plea-state-to-waive-mca-charges/articleshow/94976036.cms

 

Quote

It was a ‘sangam’ only cricket could have witnessed. On Wednesday night, the eve of the Mumbai Cricket Association (MCA) election, CM Eknath Shinde, Deputy CM Devendra Fadnavis, NCP chief Sharad Pawar and Mumbai BJP chief and BCCI’s new treasurer Ashish Shelar shared the stage to address the voters of the Sharad Pawar-Ashish Shelar group at the MCA lounge at the Wankhede stadium.

 

Quote

Fadnavis, also the state’s home minister, assured the MCA its outstanding security bill raised by the police department – about Rs 10 crore - will be waived off, following a request made by Pawar and Shelar. “I assure you MCA’s entire security bill will be waived,” he said.
Shinde and Fadnavis also assured Pawar the lease of Wankhede stadium, pending renewal since 2018, will be renewed within a month. “I request Shindeji to help renew the stadium’s lease, which expired in 2018, and waive off security charges levied by Maharashtra police,” Pawar said, a request accepted by Shinde and Fadnavis.

 

 

Thankfully BCCI's Income Tax outlay has gone up by nearly 315 crs in 2021-12, from 845 crs to 1159 crs in 2021-22. Such mindless waivers get partly compensated by their ever-rising contribution to the national exchequer.

[Trichromatic]

On 9/20/2023 at 3:35 PM, saneindian said:

All about Pawar-play in the MCA/ BCCI administration.

 

Read this from October 2022 before the MCA elections.

 

 https://timesofindia.indiatimes.com/city/mumbai/on-pawars-plea-state-to-waive-mca-charges/articleshow/94976036.cms

 

 

 

 

Thankfully BCCI's Income Tax outlay has gone up by nearly 315 crs in 2021-12, from 845 crs to 1159 crs in 2021-22. Such mindless waivers get partly compensated by their ever-rising contribution to the national exchequer.

 

But is there any justification for such waivers? They are literally distributing tax payer money to BCCI.

 

It would have been partly understandable if there was risk of Maharashtra getting no matches and govt waiving off charges to avoid that. Or other scenario if it would have increased Maharashtra getting more matches.

 

Even in these scenario how will providing retrospective waiver benefit citizens?

 

[putrevus]

3 hours ago, Trichromatic said:

 

But is there any justification for such waivers? They are literally distributing tax payer money to BCCI.

 

It would have been partly understandable if there was risk of Maharashtra getting no matches and govt waiving off charges to avoid that. Or other scenario if it would have increased Maharashtra getting more matches.

 

Even in these scenario how will providing retrospective waiver benefit citizens?

 

What would happen if BCCI moves all those matches away from that state. There might be many small businesses and vendors who are benefitting from matches being organized in the state.

 

We have to see if state is getting any fees for parking and hosting the matches. 

 

IMO it might not be as simple as greasing the politicians. 

[Trichromatic]

5 minutes ago, putrevus said:

What would happen if BCCI moves all those matches away from that state. There might be many small businesses and vendors who are benefitting from matches being organized in the state.

 

We have to see if state is getting any fees for parking and hosting the matches. 

 

IMO it might not be as simple as greasing the politicians. 

 

Good point. But then again other states with big venues are charging similar rates.

 

And why does state need to give discount retrospectively? It can be given for future matches, if this is the case.

[putrevus]

2 minutes ago, Trichromatic said:

 

Good point. But then again other states with big venues are charging similar rates.

 

And why does state need to give discount retrospectively? It can be given for future matches, if this is the case.

I am assuming they would be getting the same type of discount from other states.Retrospective discounts are provided to businesses all the time.In this case Invoices might have been created with original rates but at the time of of payment BCCI must have asked for discounts which was then provided for those invoices.

 

BCCI does create lot of peripheral jobs and revenue streams for state govts. 

[Trichromatic]

29 minutes ago, putrevus said:

I am assuming they would be getting the same type of discount from other states.Retrospective discounts are provided to businesses all the time.In this case Invoices might have been created with original rates but at the time of of payment BCCI must have asked for discounts which was then provided for those invoices.

 

BCCI does create lot of peripheral jobs and revenue streams for state govts. 

 

No such news about other states.

 

And do businesses really provide retrospective discount for 10 years?

[putrevus]

7 minutes ago, Trichromatic said:

 

No such news about other states.

 

And do businesses really provide retrospective discount for 10 years?

Did BCCI not pay for those ten years?

 

Forget discount for minute, how can the cost be same for all ten years?

Edited September 21, 2023 by putrevus

[Trichromatic]

4 hours ago, putrevus said:

Did BCCI not pay for those ten years?

 

Forget discount for minute, how can the cost be same for all ten years?

 

Rates were around 60-70 lakhs for grounds like Eden Gardens even 10 years back.