Mumbai, Oct 13: The Board of Control for Cricket in India (BCCI) has confirmed the termination of IPL franchise Deccan Chargers from the cash rich Indian Premier League on Saturday, after the franchise failed to pay a bank guarantee of Rs 100 crore.
"The termination of Deccan Chargers franchise was challenged in the Hon'ble Bombay High Court by the DCHL pending the arbitration. A Conditional Order of stay was granted by the Hon'ble High Court pending arbitration on 1st October 2012. The condition to give BCCI a Bank Guarantee of a Nationalized Bank for 100 Crores by 5.00 p.m. on 12.10.2012 to cover expenses of IPL - 6, was breached by DCHL," the BCCI said in a release.
"Thus, the termination of DC Franchise stands."
On Friday, there were reports stating that Deccan Chargers were sold to a Mumbai based company Kamla Landmarc, a real estate firm, which had agreed to pay Rs 1000 crore to Deccan Chronicle Holdings Ltd.
Since no bank came forward to pay Rs 100 crore Deccan Chargers failed to furnish the bank guarantee within the deadline issued by Bombay High Court.
While the owners of Deccan Chargers had sent a letter to NSE and BSE (National Stock Exchange and Bombay Stock Exchange) on Friday stating that they had decided to sell the shares to a Mumbai based company Kamla Landmarc for an undisclosed amount, and awaited BCCI's approval on the same issue.
"This is to inform you that pursuant to its Meeting of the Board of Directors held on October 11, 2012, it was resolved to authorize the Board of Directors to sell, transfer/dispose off the Deccan Chargers Franchise business undertakings/business division of the Company to Kamla Landmarc Real Estate Holdings Private Limited."
While the court had also granted status quo regarding the termination of the IPL team by the BCCI, as the board explained the issues pertaining to the IPL franchise as many players were awaiting their dues which posed to be a worry.
Moreover, BCCI also terminated Deccan Chargers from IPL after the IPL franchise failed to pay the bank guarantee on time, based on several management issues, which also forced them to float a new tender having terminated the existing franchise.