The BCCI on Saturday confirmed the termination of the IPL franchise Deccan Chargers from the Indian Premier League.
The franchise failed to furnish a bank guarantee of Rs 100 crore told by the Bombay High Court, leaving the court with no choice but to uphold the BCCI's termination.
"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."
The franchise failed to furnish a bank guarantee of Rs 100 crore told by the Bombay High Court, leaving the court with no choice but to uphold the BCCI\'s termination.
On Friday, there were rumours that Deccan Chronicle Holdings – the franchise owners - sold the team to a Mumbai-based real-estate company Kamla Landmarc, which is owned by Jitendra Jain.
In a letter directed to the National Stock Exchange and Bombay Stock Exchange, Deccan said: "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." However, the BCCI is yet to confirm the sale.
Earlier, the court had granted status quo regarding the termination of Deccan by the BCCI which had filed an affidavit listing a series of breaches committed by the franchise. It argued that the players had not been paid and said that around 20 banks are creditors of Deccan with dues to the tune of Rs 4000 crore pending against the group.
Deccan’s contract was terminated by the BCCI on the grounds of several management woes that came into light with the Hyderabad-based unit, following which the board announced an auction for a new city franchise.