'Objections to CAG presence lack basis'

Allaying fears that the International Cricket Council (ICC) would derecognise Board of Control for Cricket in India if a nominee of the Comptroller and Auditor General (CAG) was included in the board management, the Supreme Court on Monday (July 18) said the international body would rather appreciate the move aimed at bringing transparency to the world's richest board's finances.

The BCCI had said that inclusion of a CAG nominee would bring in an element of government interference in board affairs, which under ICC rules was a ground for its derecognition or suspension.
The Lodha panel, also comprising Justices Ashok Bhan and RV Raveendran, had recommended that state associations would include a nominee of the accountant general in their apex council and the BCCI would take in a nominee of the CAG to bring in "transparency and oversight in monitoring the finances".

Accepting the recommendation, a bench of Chief Justice TS Thakur and Justice FMI Kalifulla said, "No one can possibly argue that the object sought to be achieved by the proposed nomination is not laudable or at least desirable. Transparency and financial discipline and accountability are fundamental values which any authority discharging public functions must be committed to."

It found no merit in BCCI's argument that article 2.9 (B) of ICC rules could lead to its derecognition or suspension if nominees of accountant general and CAG were included in the governing bodies of state associations and BCCI respectively. Justice Thakur, writing the judgment for the bench, said, "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 organisation 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 AG of the state and CAG, 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 effective management of the affairs of the BCCI and state associations.
"These nominees would act as conscience keepers of the state associations and BCCI and their presence would in no way adversely impact the performance or working of the BCCI," the bench said