Deccan Chronicle Holdings’ IPL franchise, Deccan Chargers have been terminated from the Indian Premier League as its owners failed to furnish a Rs 100 crore bank guarantee to the BCCI, according to a PTI report (via The Times of India). The High Court appointed arbitrator, declared a status quo on the matter till 17th October, but the BCCI challenged the order on Saturday, 14th October, in the Bombay High Court which has put a stay on it, as reported by The Hindu. The BCCI has now floated a new tender for a fresh franchise, which also include Hyderabad, the city where Deccan Chargers was based.
On 12th October, Deccan Chronicle Holdings, had sold the franchise to Kamla Landmarc Real Estate Holdings, a real estate company. Deccan Chronicle Holdings mentioned in a filing with the Bombay Stock Exchange that the company’s board was authorised to sell, transfer/ dispose off the Deccan Chargers Franchise to Kamla Landmarc Real Estate Holdings Private Limited, but that the deal was subject to the approval of the shareholders of the Company and of concerned authorities, lenders and other third parties.
Deccan Chronicle holdings had bought the franchise for Rs 428 crore in 2008. Here’s a timeline on the BCCI vs Deccan Chargers saga:
June 2012: Plagued by financial troubles, Deccan Chronicle had first announced in June, this year, that multiple parties had expressed interest in acquiring a stake in Deccan Chargers, following which it had appointed Religare Capital Markets as advisers.
7th September: A tender was formally floated by Deccan Chronicle Holdings, in September, offering control of the franchise to a successful bidder on an “as is where is” basis, to allow banks to recover part of loans given to the company, as reported by The Hindi BusinessLine. There were reports that Venu Gopal Dhoot of Videocon had expressed interest in bidding for the Deccan Chargers franchise.
13th September: However, the only bidder that participated was Hyderabad based PVP Ventures, which had put a bid of Rs 900 crore. Deccan Chronicle rejected PVP Ventures’ bid saying that the price and terms were unacceptable. The Bombay High Court had appointed an observer to oversee the proceedings of the tender.
15th September: Nearly a week later, on 15th September, the BCCI after an emergency meeting, terminated Deccan Chargers from the IPL, since it had not payed salaries to cricketers part of the team.
17th September: Later, a proposal was submitted to the Board of Control For Cricket In India (BCCI) working committee, by a group of banks for a special purpose vehicleto run Deccan Chargers, as reported by Business Standard. The same day, Deccan Chronicle had approached the Bombay High Court.
18th September: The Bombay High Court asked the BCCI to maintain status quo on the matter till 24th September, the date of the next hearing.
24th September: The Bombay High Court suggested that the two parties should refer the matter to a mutually acceptable arbitrator.
25th September: Yes Bank, the bank supporting Deccan Chargers intervened and asked BCCI not to terminate the franchise’s contract, deposit whatever amount was due or receivable by Yes Bank and release Rs 41 crore due to Deccan Chargers.
27th September: The Bombay High Court directed Deccan Chargers to furnish a Rs 100 crore bank guarantee to the BCCI within a period of 10 days, and appointed retired Supreme Court judge CK Thakker as arbitrator to resolve the dispute within three months.