The Board of Control for Cricket in India (BCCI) has received a big blow as they will now have to pay INR 4,800 crores to Deccan Chronicles Holding Ltd (DCHL) over the wrongful termination of their IPL franchise team Deccan Chargers.
On Friday (17th July), the retired Supreme Court judge CK Thakkar, Bombay High Court-appointed arbitrator, delivered the verdict in the favour of DCHL. The BCCI will have to pay INR 4,800 crore to the company by September 2020.
In 2008, DCHL won the bidding of Deccan Chargers, Hyderabad-based team, for $ 107 million. They had a ten-year contract with the BCCI for the IPL tournament.
BCCI terminated Deccan Chargers due to their owners’ financial instability
In 2012, the BCCI terminated the franchise citing their financial instability as DCHL failed to fulfil the bank guarantee of INR 100 crore, which was directed by the Hon’ble Bombay High Court. The BCCI also claimed that the DCHL had pending dues of INR 4000 crore, including the unpaid amount of the Deccan Chargers players and bank credits of the franchise.
In that same year, the DCHL challenged against that decision as they cited that it was an illegal termination. Now, the retired Supreme Court judge CK Thakkar came with the decision that the termination was wrongful, illegal and premature.
According to ESPNcricinfo, the Indian cricket board will now have to pay INR 4800 crore, along with an interest of 10% per year since the arbitration began in 2012 and a fee of INR 50 lakh.
BCCI’s law firm Viraj Maniar of Maniar Srivastava Associates reacted on that verdict, “The detailed award copy is awaited. Once it is received, it will be studied and next course of action, decided by BCCI.’’
Deccan Chargers were one of the eight teams who participated in the inaugural IPL edition (2008). In IPL 2009, which was hosted by South Africa due to the Indian general election, Deccan Chargers won their only IPL trophy.
After the termination of the franchise in 2012, Sun TV Network won the bid of the Hyderabad-based team and named it Sunrisers Hyderabad (SRH), who is participating in the IPL since 2013.