Troubled IPL franchise Deccan Chargers have rejected a Rs.900-crore bid from PVP Films, a Hyderabad-based film production house, for ownership rights. The BCCI will decide on the next course of action on September 15.
The production house is owned by Potluri Vara Prasad, who is an entrepreneur, film financier, producer, philanthropist and educationalist. He owns PVP Energy, PVP Cinema and PVP Foundation under PVP Ventures.
It was earlier reported that Electronics major Videocon, actor Salman Khan, the RPG Group and the Adani Group were all contemplating submitting bids for the ownership of the cash-strapped franchise. But on D-day, PVP films came forward as the sole bidder.
The base price for the Hyderabad-based franchisee, which was bought for Rs. 428 crore in 2008, was reportedly around Rs. 750 crore. The buyers have to meet the criteria set by the BCCI for the sale which includes paying the entire money upfront and taking up all the current liabilities of the franchise.
- Deccan Chargers up for sale
- Forensic audit of Chargers owners’ accounts begins
- Court gives direction on ex-CEO of Deccan Chargers
On Tuesday, bankers started the forensic auditing of debt-ridden Deccan Chronicle Holdings Limited (DCHL)'s accounts to expose chinks, if any.
Also on Tuesday, the Bombay High Court directed that proceeds of the sale of the Chargers be deposited with ICICI Bank after paying five per cent to the Indian cricket board.
The order was passed by Justice SJ Kathawalla while hearing an application filed by Tata Capital against DCHL, the Hyderabad-based media house which owns Chargers, for recovery of a Rs 101 crore loan.
The outstanding debts of the DCHL were projected at Rs 3,200 crore, but DK Mittal, secretary, department of financial services in the Union finance ministry, on Tuesday declared that the total exposure of banks to DCHL stands at around Rs 5,000 crore, including Rs 3,800 crore to nationalised banks.
DCHL had on September 6, issued a tender notice inviting bids from prospective buyers for Deccan Chargers.
The Deccan Chronicle group has been facing a major financial crisis and had mortgaged assets of their IPL team to banks to raise funds. This was without the consent of BCCI and against the rules of the IPL.
The Deccan Chargers along with another franchise – Royal Challengers Bangalore have also been guilty of not clearing dues owed to its cricketers.