New Delhi, July 17: A case dating back to 2012 has come to haunt the Board of Control for Cricket in India (BCCI) and may cost the Indian board a staggering 640million USD (Rs 4,800 crore). Deccan Chargers, one of the first eight teams of the Indian Premier League (IPL), had challenged the BCCI for ‘alleged illegal termination’ and the Bombay high court-appointed arbitrator has now passed an award in favour of the owner of the franchise – Deccan Chronicle Holdings (DCHL).
On September 15, 2012, the BCCI had announced the termination of Deccan Chargers following an emergency meeting. While DCHL, the then owners of the team, moved the Bombay high court, the BCCI initiated a new tender for the Hyderabad franchise, which was subsequently won by the Sun TV Network NSE 0.59 %.
The high court had appointed retired Supreme Court justice CK Thakkar as the sole arbitrator between the two parties eight years ago and on Friday, DCHL won the arbitration against the BCCI.
The BCCI has been directed to pay a total of 640 million USD (Rs 4,800 crore), which includes various claims made by the DCHL by September 2020.
“We haven’t received the judgement copy yet, only after reading we will decide next plan of action,” Hemang Amin, interim CEO of the BCCI, told ET.
The entire episode started when media company DCHL failed to furnish a bank guarantee from a nationalized bank to the BCCI.
“However, in this case, the company (DCHL) is already under Corporate Insolvency Resolution Process (CIRP) and the lenders are acting fiduciaries. It will be difficult for the BCCI to deal with so many players,” said a senior lawyer as quoted by ET.
DCHL had acquired the rights of Hyderabad Franchise for $107 million in 2008 for a period of 10 years. DC won the second season of IPL. (Courtesy: wion)