In a major relief to former Indian Premier League chairman Lalit Modi, a tribunal has set aside a penalty order issued by the Enforcement Directorate against him and some others in a 15-year-old FEMA case related to hosting of the 2009 T-20 cricket tournament in South Africa.

The former IPL chief welcomed the tribunal's verdict and said the judgment is not simply personal vindication but also reaffirms the importance of due process that allegations must ultimately be tested against evidence and law.

The 2009 event was moved to the foreign shore due to security concerns for the game in the wake of the conduct of the general elections in India that year.

The BCCI, the cricket board, had moved funds to South Africa for this event, which the ED considered a contravention of the Foreign Exchange Management Act (FEMA).

The main charge was in regard to the transfer of foreign exchange worth USD 4,98,62,799 (equivalent to more than Rs 243 crore) to an entity outside India without prior approval of the Reserve Bank of India.

The federal agency issued the FEMA show cause notices in 2011 followed by penalty orders in 2018 against Modi, some former BCCI executives and others.

These entities later challenged the order before the Appellate Tribunal set up under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act (SAFEMA).

A division bench of the tribunal including Chairman Justice Munishwar Nath Bhandari and Member Rajesh Malhotra issued a 105-page order on July 16 stating Modi was "not in-charge of the affairs and otherwise he has been framed in the case without any material showing his responsibility".

"The penalty imposed on Shri Lalit Modi is wholly erroneous is thus interfered," the order said.

Modi, based abroad, welcomed the decision and released a statement through his lawyer Mehmood Abdi.

"For over sixteen years I have consistently maintained one simple position: I acted in good faith, in the best interests of Indian cricket and the IPL, and committed no personal wrongdoing.

"This judgment is not simply personal vindication. It reaffirms the importance of due process, objective legal analysis and the principle that allegations must ultimately be tested against evidence and law," Modi said.