According to Bombay High Court, Deccan Chargers had to furnish a bank guarantee of Rs 100 crore as they faced a deadline and failed to pay the amount to BCCI.
When the owners found a prospective buyer, Bombay High Court placed a condition asking the IPL franchise to pay the bank guarantee and then go ahead with the sale, failing which BCCI might take an appropriate decision.
Since no bank had come forward to pay the guarantee, Deccan Chargers faced the axe, as BCCI terminated them from Indian Premier League.
Earlier in the day, the franchise decided to sell the IPL team to a Mumbai based real estate firm Kamla Landmarc, as they had agreed to pay nealry Rs 1000 crore but then things changed as no bank came forward to furnish the amount, as Deccan Chargers had to be terminated having failed to furnish the bank guarantee of Rs 100 cr by 5 PM on Friday.
Deccan Chargers is the second team to be terminated by BCCI as Kochi Tuskers were also axed from IPL earlier this year. This further suggests that BCCI can float a tender for a new franchise soon.