Suspended Indian Premier League chairman Modi - who himself faces three accusations of corruption, fraud and money laundering from the Board of Control for Cricket in India - claims Clarke said Modi and IMG were plotting to form a rebel Twenty20 competition in England and had held talks with some counties.
Modi's action follows separate legal proceedings by IMG, which last month issued the ECB chairman with a writ for "gross defamation".
A statement issued on Modi's behalf today read: "Lalit Modi has issued proceedings for libel today in the High Court in London against Giles Clarke, the chairman of the England and Wales Cricket Board (ECB). Mr Modi complains of defamatory allegations made in an email sent by Mr Clarke on 2 May 2010 to Shashank Manohar, the president of the Board of Control for Cricket in India and others.
"In his email Mr Clarke alleged that Mr Modi was planning to destroy world cricket by setting up a rebel league in contravention of ICC regulations. Mr Modi utterly refutes Giles Clarke's claims and has made this clear in detailed submissions made to the BCCI on 31 May 2010."
