New Delhi: Beleaguered IPL franchise Deccan Chargers has deposited players’ salary with the BCCI, but the concerned bank has apparently told the Board that it would not be encashed.
In a related development, the Bombay High Court on Monday directed the BCCI to maintain status quo on Deccan Chargers and not to float tender for a new IPL franchise till Monday, when the court will again hear the case.
Justice SJ Kathawalla granted franchise owners Deccan Chronicle Holdings Limited (DCHL) a week’s relief after their counsels sought time to read the bulky affidavit that the BCCI submitted with the court.
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After terminating Deccan Chargers’ deal for “breach of contractual obligations”, the BCCI marketing committee decided to float tender inviting bids for a new team, but did not announce it formally after the DCHL moved the Bombay High Court on Saturday morning.
DCHL, which has borrowed over Rs 4,000 crore loan from various lenders, told the court that BCCI’s decision to terminate Chargers was “illegal and bad in law”. It sought a stay on the franchise’s termination on the grounds that BCCI was already planning to invite tenders for a franchise from Hyderabad.
BCCI filed a counter-affidavit with the court on Monday.
It also said that it was trying to help DCHL in its troubled times, pointing out that it helped the company float a tender to invite bids for Deccan’s sale.
But DCHL on September 13 rejected the lone bid, received from the Hyderabad-based PVP Venture Capitals as it said that it did not agree to the terms and conditions offered. The bid was worth Rs 900 crore.
Meanwhile, DCHL has, interestingly, deposited player salaries with the BCCI instead of giving it directly to the players themselves.
“DCHL has deposited a cheque of players’ fees with the Board. It’s quite interesting that they gave it to the Board and not to the players. More interestingly, the concerned bank has now advised the BCCI not to deposit the cheque with it because it won’t be encashed,” a BCCI source told MAIL TODAY. “The bank, one of many from whom DCHL has borrowed money, said so because it obviously is keen to recover the money it has lent to the company,” he said.
The players’ fees is said to be between Rs 30 crore and Rs 35 crore.
The source said that the concerned bank is one of many entities — private and public banks, non-banking firms, and other lenders — from which DCHL has borrowed huge sums of money.
The BCCI, meanwhile, could float the tender for the IPL title sponsorship. “The five- year deal with DLF has ended and they have decided against renewing it. So, we will now float a tender to invite bids for the title sponsor,” said the source.
In 2008, DLF signed the five-year title sponsorship deal worth $50 million.
“Some interested parties have already approached the BCCI regarding the title sponsorship. Amongst them is a leading mobile service provider, a well-known car manufacturer and a leading car maker,” he said.