The IPL media rights agreement between the BCCI and Star India has fetched Maharashtra government a stamp duty of INR 82 crore.
The department has reportedly also received a sum of INR 5.39 crore on account of stamp duty for the BCCI-Oppo team jersey title sponsorship deal earlier this year.
The Maharashtra government has earned around INR 82 crore as stamp duty from the five-year Indian Premier League media rights deal between the Board of Control for Cricket in India and Star India, a Department of Stamps and Registration, Government of Maharshtra, official has claimed.
Star India has acquired the IPL media rights for an INR 16,347 crore winning bid. The deal resulted in a windfall. Agreement of such nature like the one between the BCCI and Star India attracts a stamp duty of 0.5 per cent of the total contract value.
“After coming to know from print and TV media about the contract, we took up the matter with the Board of Control for Cricket in India (BCCI), with whom Star India signed the contract,” a top Department of Stamps and Registration official has reportedly told PTI. “The positive approach of Vinod Rai, head of the Supreme Court-appointed Committee of Administrators of BCCI, helped in the speedy recovery of the amount,” the official has said on condition of anonymity.
“We (Department of Stamps and Registration) informed the BCCI that the agreement of global media rights is chargeable under sections 5(h)(A)(ii) of the Maharashtra Stamp Act. We also pointed out that under Section 34 of the Act, the instrument (agreement) is inadmissible in evidence if not duly stamped,” the official said.
“The Stamp Collector’s Office in Mumbai asked Star India to submit the agreement copy for payment of stamp duty,” the official reportedly revealed. “As per the Act, the contract agreement covering exclusive rights of telecasting, broadcasting or exhibition of an event or a film attracts stamp duty of 0.5 per cent of the amount agreed to in the contract, if the agreement amount exceeds Rs 10 lakh,” the official said.
This meant a stamp duty liability of INR 817,375,500 last week, which the BCCI paid.
“Till last year, it was observed that parties which entered into contracts with BCCI were not keen to pay the stamp duty amount. As a result, the state government lost a big amount which could have come into its kitty,” the official said. “This year the authorities decided to be proactive and sent teams to BCCI and concerned firms in a bid to garner the stamp duty,” the official added.
A team went to the BCCI office in Mumbai to carry out “inspection of such agreements,” he added.
The official claimed that this is the second instance this year of the Stamps department, with the help of Rai, former Comptroller and Auditor General of India, recovering stamp duty.
A few months ago, the department received a copy of the agreement between the BCCI and Oppo Electronics Corporation, which said Oppo has been appointed as the team sponsor for the next five years, a deal worth Rs 1,049 crore.
“The stamp duty on the agreement came to Rs 5.39 crore, which was 0.5 per cent of the total amount and was paid by Oppo,” the official said.