BCCI to pay Deccan Chargers Rs. 4,800 crore: Here's why
Former Indian Premier League franchise Deccan Chargers have won the arbitration case against the Board of Control for Cricket in India (BCCI). Bombay High Court-appointed arbitrator (retired) Justice CK Thakkar delivered the verdict on July 17. As per the verdict, the BCCI has been told to pay Rs 4,800 crore to the franchise as compensation by September this year. Here is more.
How did the dispute arise?
Following the advent of Indian Premier League, Deccan Chronicles Holding Ltd (DCHL) was declared successful bidder for Hyderabad-based franchise Deccan Chargers, for ten years. However, BCCI issued a show-cause notice to DCHL, to terminate the franchise in 2012. It has been learned that the termination was confirmed a day before expiry of the 30-day period granted for responding to the notice.
The franchise failed to pay Rs. 100 crore
The franchise was terminated after failing to put up the Rs. 100 crore bank guarantee set by the Bombay High Court to stay in the league. After the franchise was made redundant, DCHL approached the Bombay High Court, claiming the termination was arbitrary. In 2012, the HC appointed retired Supreme Court Justice C K Thakker as the sole arbitrator to decide the matter.
Ashish Pyasi said BCCI illegally terminated the contract
"BCCI had terminated the contract of Deccan Chronicle a day before. The challenge was in respect of illegal and premature termination and the tribunal has also come to the conclusion that the termination was premature," Ashish Pyasi, associate partner of Dhir and Dhir Associates, said.
The bifurcation of total compensation
As per media reports, the compensation is Rs. 4,800 crore, along with an interest of 10 per cent every year since the arbitration began in 2012 and a fee of Rs 50 lakh. "We haven't received judgement copy yet, only after reading we will decide next plan of action," Hemang Amin, the interim CEO of the BCCI, was quoted as saying in Economic Times.
Deccan Chargers won the second IPL edition
The Deccan Chargers were one of the eight franchises to participate in the inaugural edition of Indian Premier League. Although the franchise finished at the bottom, Australia's Adam Gilchrist led them to a maiden title in 2009. In 2012, BCCI invited fresh bids for the Hyderabad franchise, which eventually went to the Sun Network. It currently owns the Sunrisers Hyderabad.
