IPL governing council scraps two teams

Monday, October 11, 2010

IPL governing council scraps two teams

In a rare happening, IPL governing council had taken a decision, which would certainly hurt supporters of two major teams. Rajasthan Royals and Kings 11 Punjab had been shown the exit door, for reasons unknown.

Though, officially the IPL governing council had issued notices that both teams have breached the franchise agreement.

Preity Zinta led kings 11 Punjab whose shareholders included Bombay Dyeing Ness Wadia and Dabur Scion Mohit Burman. Ness Wadia was looking to sell off the franchisee, as some reports have earlier indicated.

Both the teams have stated that they have not received any notice from the BCCI.

The real interest revolves around the player’s auction next month. It remains to be seen how many teams would be included in the fourth IPL, and will the player’s auction be held as scheduled.

It is assumed that both the terminations could be the result of a close nexus to Lalit Modi, the former IPL Boss.

However, the termination clause, according to BCCI was breached by both the teams.
Here are the clauses, which have been breached by both the consortium.

• Difference exists between the actual owners, and the person who signed the agreement papers.

• Foreign investments which came in through places such as Mauritius, considered a tax haven.

• Shares transferred among the shareholders without BCCI’s nod.

• Tax details pending.

Interestingly, even the Kochi owners have been given a deadline of 10 days to submit the shareholding pattern, and to form a company. Failing to do so may lead to termination.

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