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It has been reported in some sections of the media that the Mumbai High Court has stayed the termination of the Deccan Chargers Franchise, announced by the BCCI yesterday evening.
The BCCI would like to clarify that the counsels of both sides were present in Court at 10:30 am on Saturday, 15 September 2012. The Court heard both parties, and did not pass any order staying the termination. The matter has been placed for hearing on Monday, 17 September 2012.
The information that the termination of the franchise has been stayed is incorrect.
DCHL fails to comply with deadline for overdue player fees
By IPL Staff
Chennai 15 September 2012
Date: 15 September 2012
BCCI was compelled to hold an emergency meeting of the IPL Governing Council late Friday evening to discuss certain developments due to the Deccan Chargers’ defaults.
Yesterday, despite the Bombay High Court appointing a court officer to act as Observer at the opening of the tender, which was conducted under the aegis of the BCCI to save the beleaguered franchise, Deccan Chronicle Holdings Ltd rejected the bid that was received in the amount of Rs 450 Crores cash and an equal sum in convertible debentures. This was despite the bidder meeting the eligibility criteria of the BCCI.
This evening, BCCI has received a lawyers notice invoking arbitration from the franchise stating that it had not committed any breaches and even if such breaches were committed, the BCCI should not act to terminate the franchise till Yes Bank Ltd furnishes sufficient finance to cure the breaches. By this, Deccan Chronicle Holdings Ltd has clearly admitted its inability to cure its breaches within the time stipulated in the BCCI notice despite every bit of assistance from the BCCI. Since the month of May, BCCI has received repeated assurances that the overdue player fees would be paid; all of these promises have been unfulfilled.
The Governing Council took note of the sudden change of stance by the franchise and also the fact that any further extension of time would seriously prejudice the interests of the players.
Considering the stated position of the Deccan franchise to refuse to rectify the various defaults including payments to players, foreign Boards etc, as also the deleterious effect such conduct would have on the reputation of the IPL and the franchise itself, a decision was taken to forthwith terminate the Deccan Chargers franchise.
The BCCI is completely justified in this action which was taken with careful deliberation and only due to the absolute inability of the franchise to effectively run the team.