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'Acted in compliance of obligations'

Press Trust Of India
Dec 13, 2011 at 05:59pm IST

New Delhi: Nimbus on Tuesday claimed that it has "acted in compliance of its contractual obligations", a day after BCCI scrapped the contract with its broadcast rights holder for defaulting on payments.

Taking a tough stand, the BCCI on Monday terminated its contract with Nimbus for defaulting on payments and forfeited the bank guarantee amount of Rs 2,000 crore.

"Given the confidentiality provisions of such contracts, Nimbus is unable to discuss details with the media, but can confirm that it has acted in compliance of its contractual obligations and variations agreed between the parties from time to time," Nimbus said in a statement.

Acted in compliance of obligations: Nimbus

The BCCI on Monday terminated its contract with Nimbus for defaulting on payments.

The company though added that it was working towards reaching a resolution.

"Nimbus is working towards achieving full resolution of any differences that may have arisen between the parties and is hopeful of a reasoned conclusion of these in the coming weeks," the statement added.

"Obviously, it has fully reserved all its rights and options, including invoking the arbitration process if need be. No further statement will be made by Nimbus in this regard till its discussions with BCCI are concluded in the coming weeks," it further said.

The decision to terminate Nimbus' contract, three years before its expiry, was taken at the BCCI's emergency working committee meeting where members were "unanimous" in scrapping the telecast deal for India's home series matches.

Nimbus, which had signed a four-year deal with the BCCI in October 2009 for a whopping Rs 2000 crore, had paid Rs 24 crore ahead of the working committee meeting, but there was still an outstanding amount of Rs 88 crore.

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