Kochi Tuskers have won arbitration case against the BCCI over wrongful terminational from the IPL and now the scrapped franchise will be paid Rs 850 crore in compensation. Tuskers made their debut in 2011, but an internal dispute resulted in them being kicked out of the Indian Premier League.
The BCCI is set to pay a huge compensation of more than Rs 800 crore to disbanded IPL franchise Kochi Tuskers Kerala for terminating their contract in 2011. The owners of the Kochi-based franchise had won an arbitration case in 2015 after having successfully challenged the BCCI's decision to encash the bank guarantee citing breach of a contractual agreement. The RC Lahoti headed panel heard the case and had ordered the board to pay up Rs 550 crores as compensation along with 18 percent annual penalty if it failed to do so.
"We have to pay Kochi compensation. All legal options have been exhausted. Normally when arbitration decision goes against you, it will be stupid to move Supreme Court appealing against it. We have no option, but the question is how much," an influential IPL GC member told PTI at the end of IPL's Governing Council meeting on Tuesday (October 24).
Kochi Tuskers were awarded entry into India's premier tournament along with Pune Warriors India in 2011. The Kerala-based franchise
"Kochi Tuskers has demanded Rs. 850 crore as compensation. Today we discussed the matter at IPL GC meeting and we will now place the matter before general body. Let them take a call but obviously, some negotiations are needed," IPL chairman Rajiv Shukla said.
The decision to kick out the Kochi-based franchise was taken by Shashank Manohar, who was the BCCI president at that time, and majority stakeholders of the BCCI opposed the step.
"It was one man's obstinacy that is now costing us a bomb. Had Shashank not taken that decision, we could have worked our way out. In fact, before Kochi went to arbitration, they had asked for a compensation of Rs 300 crore. Even then our officials showed arrogance and now we will be forced to shell out more than double," the official further added.
The BCCI will be trying to negotiate and bring down the compensation to a minimum level.
"Even then we will not be able to bring down to less than Rs 600 crore, I feel," said the official, who had been associated with the case.
Meanwhile, in another development, the BCCI will be earning a token amount of Rs 5 lakh from Chennai Super Kings (CSK) as a part of 5 percent earnings from the total valuation of a franchise that transfers its ownership. As per IPL rules, in the circumstance of any franchise transferring its ownership, it will have to pay five percent of its total valuation to the BCCI.
Chennai Super Kings is now under the wings of Chennai Super Kings Company Limited (CSKCL) with India Cements transferring its shares to the newly formed limited company.
"This is bizarre but true. We will get Rs 5 lakh but we are trying to take a legal opinion," the official said.
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