Court throws Royals a lifline

Justice SJ Vazaifdar on Tuesday dismissed an appeal filed by BCCI challenging the stay granted by the arbitrator and permitted Rajasthan Royals to participate in the IPL 4 auction that is to be held on January 8 and 9.

The Court, however, imposed a condition on Rajasthan Royals directing them to file an affidavit before it by January 3 specifying full details of its ownership pattern and mode of control.

“It is necessary that the bonafides of the three owners -- Emerging Media (IPL) Ltd, Tresco International and Bluewater Estates Ltd -- are established. BCCI is entitled to call for full disclosure of ownership under the franchisee agreements,” the court observed.
Apart from specifying the mode of control, the affidavits should also include a statement from all the three company owners that they are in full control of their investment companies.

The Court also directed Rajasthan Royals to submit $2.83 million as guarantee to the BCCI for the contract and $18 million as bank guarantee for the players.

The arbitration proceedings shall continue unless BCCI approaches the Supreme Court challenging the stay.

“Our legal experts will first study the order and then we will decide the future course of action. We may move the Supreme Court” a BCCI source said.

BCCI had on October 10 terminated the franchisee agreement of Royals -- winners of IPL in 2008 -- after the team allegedly committed breach of contract by having changes in its corporate structure without consent.

Royals had on October 26 approached the High Court against BCCI. However, the case was kept pending as both the parties agreed to resolve the matter through arbitration.