The DCHL-backed IPL franchise - Deccan Chargers - has received a last minute lifeline from its Bombay High Court-approved arbitrator. The arbitrator has extended the deadline for DCHL to furnish bank guarantees of Rs 100 crore.
These developments come on the back of the DCHL board approving an MOU with a Mumbai-based realty player for the sale of the franchise, reports CNBC-TV18's Ashmit Kumar.
The DCHL board has approved the execution of a draft MoU with Kamala Landmarc with respect to the sale of the IPL franchise. Kamala Landmarc is a significant participant in the Mumbai realty market and also has a JV with Godrej Properties. The big stumbling block for the deal was the BCCI approval. DCHL has stated that they it has written to the BCCI, but has not yet received an approval. It has assured that it will raise the matter in the arbitration process.
There were some major developments in the arbitration process on Friday. The fear of the termination of the IPL franchise was saved by Mona Bhide, a counsel appearing for DCHL, who made an interim application under Section 17 of the Arbitration and Conciliation Act for an extension of the deadline for furnishing of the bank guarantees.
This extension was provided by CK Thakkar, a retired Supreme Court judge and the Bombay High Court-appointed arbitrator in the case who is the adjudicator in the case.