CHENNAI: Boxing Federation of India was in for a rude shock when the international boxing association (AIBA) announced a new host for the World Men’s Boxing Championships next year and imposed a hefty fine for not obliging contract.
AIBA said because New Delhi did not fulfil its obligations to pay host fee, it has to pay $500,000. Belgrade has been announced as the host city.
BFI, on the contrary, felt there was no question of not agreeing to pay the host fee but there were discrepancies in it and procedural issues to transfer funds.
The reason cited by BFI for non-payment was because it had to be routed through an account in Serbia. Because Serbia is on the grey list of Financial Action Task Force (FATF) countries, BFI said Indian banks normally don’t transfer money. This transpired because AIBA’s original account in Lausanne was frozen due to alleged corruption charges.
More than the transfer, BFI was not comfortable with AIBA’s decision of calling for new bids on December 1, the day New Delhi’s bid was supposed to end.
“The decision was taken in haste,” said BFI. According to a BFI official, even the money for hosting the event was reduced in the new document from New Delhi’s $4 million.
It is learnt that BFI officials were trying to negotiate in February the hosting fees which it was supposed to pay on December 1, 2019.
According to BFI statement, “BFI is in touch with AIBA and BFI president Ajay Singh has spoken with Mohamed Moustahsane (AIBA interim chief) and both parties are working on an amicable solution.”