September 15, 2012

Relief for Deccan Chargers, Bombay High Court stays termination notice



IPL team Deccan Chargers, who were yesterday shown the door by the BCCI, found some relief after the Bombay High Court stayed the Board`s termination notice here today.

The BCCI, late last night, terminated the contract of the debt-ridden Deccan Chargers, bringing an end to the suspense on the fate of the beleaguered franchise.

The decision to terminate Deccan`s contract was taken at an emergency governing council meeting of the IPL in Chennai. The BCCI President N Srinivasan took the final call to end Charger`s contract after discussing the issue with other members, a top BCCI official had said.

Deccan Chronicle Holdings, the owner of Deccan Chargers, received a bid of Rs. 900 crore by PVP Venture Capitals but surprisingly chose to reject it at the auction as it considered the price and terms unsuitable.

The BCCI, in a press release, later also said, "On Thursday, despite the Bombay High Court appointing a court officer to act as Observer at the opening of the tender, which was conducted under the aegis of the BCCI to save the beleaguered franchise, Deccan Chronicle Holdings Ltd rejected the bid that was received in the amount of Rs. 450 Crores cash and an equal sum in convertible debentures. This was despite the bidder meeting the eligibility criteria of the BCCI.

"On Friday evening, BCCI has received a lawyers notice invoking arbitration from the franchise stating that it had not committed any breaches and even if such breaches were committed, the BCCI should not act to terminate the franchise till Yes Bank Ltd furnishes sufficient finance to cure the breaches. By this, Deccan Chronicle Holdings Ltd has clearly admitted its inability to cure its breaches within the time stipulated in the BCCI notice despite every bit of assistance from the BCCI.  Since the month of May, BCCI has received repeated assurances that the overdue player fees would be paid; all of these promises have been unfulfilled."

BCCI`s working committee is also scheduled to meet today to decide the future course of action. It remains to be seen now as to what the Board`s next step will be.

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