Delhi High Court Delivers Landmark Judgment on Sports Code: Kochhar & Co. Secures Critical Ruling Advancing Governance, Inclusivity, and Transparency in Indian Sports

Whether Horses are Athletes or Equipment? Delhi High Court Settles the Issue.
Power to Relax Provisions of Sports Code Cannot Be Exercised Arbitrarily and Without Application of Mind, Rules Delhi High Court
Exemptions granted to EFI should align with principles of good governance. Held to be arbitrary.

In a landmark ruling, the Delhi High Court has reinforced the principles of governance, inclusivity, and transparency enshrined in the National Sports Development Code, 2011 (“Sports Code”). This critical judgment addresses the legality of exemptions granted under a “Relaxation Clause” introduced via notification dated February 1, 2021, by the Ministry of Youth Affairs and Sports (MYAS), and the consequent order of the MYAS granting the Equestrian Federation of India (EFI) certain exemptions/relaxations on the applicability of specific provisions of the Sports Code.

The Rajasthan Equestrian Association, the Petitioners in this case, were represented by Mr. Rajeev Dutta, Senior Advocate, along with Mr. Ashish Kothari and Mr. Balasubramanian Ramesh of Kochhar & Co. (Advocates & Legal Consultants).

Key Issues Adjudicated by the Court

Validity of the Relaxation Clause: While the High Court upheld the legality of the Relaxation Clause, it restricted its scope, emphasizing that powers to relax must be exercised judiciously, with adequate reasoning and guided by the advice of ministry officials.
Arbitrariness of Exemptions Granted to EFI: The Court found the exemptions to be arbitrary, lacking substantive justification, and contrary to the principles of good governance and inclusivity mandated by the Sports Code.

Background and Court’s Observations

The exemptions granted to EFI allowed it to:

Bypass affiliation requirements with state and district-level associations.
Modify membership and voting rights for state bodies.
Deviate from compliance with Model Election Guidelines.

The Petitioners argued that these relaxations undermined grassroots representation and enabled disproportionate dominance by Army-affiliated entities and private clubs within EFI.

The Court made several significant observations, including:

Are Horses Athletes or Equipment? The Court clarified that equating horses with athletes is impractical and inconsistent with the Sports Code, which categorizes them as equipment under Clause 10.4.4.
Governance Standards: Equestrian sports’ unique demands do not exempt them from established governance standards.
Representative Structure: Club-based governance diluted grassroots representation by State and District associations, contravening the pyramidical structure mandated by the Sports Code.
Empirical Evidence: Exemptions granted to EFI were based on generalized observations rather than empirical evidence.
Grassroots Development: EFI’s lack of grassroots development and repeated non-compliance with the Sports Code highlighted systemic governance deficiencies.

Fact-Finding Committee and Future Steps

To address these deficiencies, the Court has established a Fact-Finding Committee chaired by a retired Delhi High Court Judge. This Committee is tasked with evaluating EFI’s governance practices, infrastructure, and athlete participation, with a three-month deadline to submit its findings. Based on the Committee’s recommendations, MYAS will decide on the continuation, modification, or withdrawal of the exemptions granted to EFI.

Impact of the Judgment

This ruling marks a significant step toward ensuring accountability among National Sports Federations (NSFs) and aligning sports governance with the principles of the Sports Code. It also sets a precedent for addressing systemic inequities within NSFs and promoting grassroots development and inclusivity in Indian sports governance.