The payment of what is estimated to be USD 4 million was due to be made on December 2 last year
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The Boxing Federation of India (BFI) asserted that the International Boxing Association (AIBA) acted in haste after the hosting rights of the 2021 men's world championship were taken away from the country for non-payment of host city fee. In a statement, AIBA handed over the championship, originally allotted to India in 2017, to Serbian capital Belgrade. The BFI acknowledged the delay in payment but blamed it on procedural complications arising out of the AIBA's failure to resolve issues with regards to the account in which the money was to be transferred.
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Delay in payment
The payment of what is estimated to be USD 4 million was due to be made on December 2 last year. "After New Delhi didn't fulfill its obligations to pay host fee as mentioned in the Host City Agreement terms, AIBA has terminated the contract. Therefore, India would have to pay a cancellation penalty of USD 500," the AIBA said in a statement. The elite competition would have happened for the first time in the country.
The BFI, headed by Spicejet Airlines owner Ajay Singh, said the AIBA could not clearly tell where to transfer the money. "We have reason to believe that the decision to change the venue of WCH-2021 was taken in haste without due consultation with BFI...the penalty that is imposed is shocking and surprising. Both parties are working for an amicable solution. BFI is confident that the penalty will be waived off and we will host World Championships in future," the BFI statement read.
AIBA's account frozen
AIBA has been suspended by the International Olympic Committee (IOC) for administrative and financial mismanagement. "The AIBA account in Lausanne was frozen. The account of AIBA in Switzerland as mentioned in Host City Agreement is still inoperative. AIBA intended to have some previous payments through an account in Serbia. "As Serbia is in the Grey List of Financial Action Task Force (FATF) countries, Indian Banks do not normally send money to Serbia. AIBA could not resolve these issues," said the BFI.
"The account of AIBA in Switzerland, as mentioned in Host City Agreement, is still inoperative," it added.
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