Bombay HC verdict on Deccan Chargers likely tomorrow
The Bombay high court today was witness to a heated exchange of arguments between the counsels of BCCI, DCHL and Kamla Landmarc, the realty player interested in buying the IPL franchise Deccan Chargers.
The Bombay high court today was witness to a heated exchange of arguments between the counsels of BCCI, DCHL and Kamla Landmarc, the realty player interested in buying the IPL franchise Deccan Chargers. With the BCCI arguing for termination of the team's contract, the high court is likely to give its verdict tomorrow.
CNBC-TV18's Ashmit Kumar reports, the BCCI argued today in the Bombay High Court for the termination of the IPL franchise Deccan Chargers and it was met with a very fiery response from a number of parties. First amongst them being Kamla Landmarc. It is a potential buyer and a Mumbai based realty player with an annual turnover of over Rs 2000 crore that has put on record that it did in fact put a proposal for buying out the team for Rs 1250 crore. It also went a step ahead to say that it is willing to furnish the required bank guarantees of Rs 100 crore as stated by the Bombay High Court.
To this, DCHL added that it has invested over Rs 6000 crore in the franchise and the termination will nullify all those investments. It also said that if in case the franchise is indeed terminated it will not be able to meet any of its financial commitments either to the banks or to the players making its position very clear. To this, the BCCI responded that the sale is hardly the solution. It said that its own approval is essential for any sale process to go through.
It also said that the sale, the way it has been envisioned right now will see Rs 1250 crore coming into the company over a period of 10 years. Hence, it will not have DCHL meeting any of its short-term commitments.
It also pointed out that 7 winding up petitions have been filed against DCHL and that itself qualifies as a bona fide case of insolvency, therefore, giving BCCI, the right to terminate the franchise.
The Bombay High Court has taken these arguments into consideration and will be giving out its judgment tomorrow.