Chargers run out of battery, as BCCI ends its IPL contract
13 Oct 2012 8:01 AM IST
The Board of Control for Cricket in India [BCCI] on Friday terminated the contract of Indian Premier League [IPL] franchise Deccan Chargers after its failure to pay the stipulated bank guarantee of Rs 100 crore. In a statement, the BCCI stated that concerns over players' payments and a 'sudden change of stance by the franchise' had precipitated the decision.
'BCCI was compelled to hold an emergency meeting of the IPL governing council late on Friday evening to discuss certain developments due to Deccan Chargers' defaults,' the official statement read.
'This evening, BCCI received a lawyers' notice invoking arbitration from the franchise stating that it had not committed any breaches and even if such breaches were committed, BCCI should not terminate the franchise till Yes Bank Ltd furnishes sufficient finance to cure the breaches. By this, Deccan Chronicle Holdings Ltd [DCHL] has clearly admitted its inability to cure its breaches within the time stipulated in the BCCI notice despite every bit of assistance from the board. Since May, BCCI has received repeated assurances that the overdue player fees would be paid; all of these promises have been unfulfilled,' the statement added.
Earlier on Friday, Kamla Landmarc Real Estate, a Mumbai-based real estate firm, had bought the Deccan Chargers franchise for an undisclosed amount. DCHL on Friday informed the Bombay Stock Exchange that the board of directors of the company at its meeting held on Thursday decided 'to sell, transfer/dispose off Deccan Chargers franchise business to Kamla Landmarc Real Estate Holdings Pvt Ltd'.
DCHL purchased the Hyderabad franchise for Rs 428 crore in 2008. At the auction, the base price was said to be around Rs750 crore. The winning bidder had to meet BCCI's eligibility criteria and other requirements. Chargers finished at the bottom of the inaugural IPL, only to win the competition in 2009.
'BCCI was compelled to hold an emergency meeting of the IPL governing council late on Friday evening to discuss certain developments due to Deccan Chargers' defaults,' the official statement read.
'This evening, BCCI received a lawyers' notice invoking arbitration from the franchise stating that it had not committed any breaches and even if such breaches were committed, BCCI should not terminate the franchise till Yes Bank Ltd furnishes sufficient finance to cure the breaches. By this, Deccan Chronicle Holdings Ltd [DCHL] has clearly admitted its inability to cure its breaches within the time stipulated in the BCCI notice despite every bit of assistance from the board. Since May, BCCI has received repeated assurances that the overdue player fees would be paid; all of these promises have been unfulfilled,' the statement added.
Earlier on Friday, Kamla Landmarc Real Estate, a Mumbai-based real estate firm, had bought the Deccan Chargers franchise for an undisclosed amount. DCHL on Friday informed the Bombay Stock Exchange that the board of directors of the company at its meeting held on Thursday decided 'to sell, transfer/dispose off Deccan Chargers franchise business to Kamla Landmarc Real Estate Holdings Pvt Ltd'.
DCHL purchased the Hyderabad franchise for Rs 428 crore in 2008. At the auction, the base price was said to be around Rs750 crore. The winning bidder had to meet BCCI's eligibility criteria and other requirements. Chargers finished at the bottom of the inaugural IPL, only to win the competition in 2009.
Next Story
