Modi kin owns RR majority equity

Modi kin owns RR majority equity

Money matters: Cricket board knew about stake sale to Kundra, alleges team

Modi kin owns RR majority equity

In a statement detailing their shareholding pattern, the Jaipur-based team on Tuesday revealed that the majority stake of 44.2 per cent was owned by Chellaram. The team stated that their bid consortium was led by the UK-based Emerging Media (IPL) Ltd, denying BCCI chief Shashank Manohar’s allegation that the bidders’ identity was not known.

“The other entities in the consortium were disclosed in the bid submission documents,” the statement read.

“The current shareholders of EM Sporting Holdings Limited (the parent company of the Jaipur IPL Cricket Company Pvt Ltd), who all have multiple business interests and independent means, are as follows: Emerging Media (IPL) Ltd (Manoj Badale - 32.4 per cent), Tresco International Ltd (Suresh Chellaram Family - 44.2 per cent), Blue Water Estate Ltd (Lachlan Murdoch - 11.7 per cent) and Kuki Investments Ltd (Raj Kundra and Family - 11.7 per cent). There are no other shareholders,” it added.

The Rajasthan team owners said the revelation of the shareholding pattern is meant to clarify “certain misconceptions about the franchise, which have been raised through the media.”

The team also rejected suggestions that the RR bid flouted norms. “The Rajasthan Royals franchise bid was successful, with full compliance of BCCI guidelines, in a process conducted with the committee members of BCCI in January 2008.

BCCI was apprised
Full details of the consortium bid structure and the way the company would be set up were contained in the original submission to the BCCI in January 2008,” the team said. Stating that “the corporate structure was established in accordance with the details provided in the bid submission shortly after the bid,” the Royals said, “it (structure) was not established prior to the bid as we obviously did not know if the bid would be successful.”

The Jaipur team made it clear that BCCI was apprised of all the developments relating to the incorporation of Indian company Jaipur IPL Cricket Pvt Ltd, in March 2008.
“On March 8, 2008, an Indian company Jaipur IPL Cricket Pvt Ltd was incorporated, as detailed in the bid submission. We then executed the franchise agreement on 14 April 2008. The ownership of the consortium did not change between the award of the bid on 23 January 2008 and the signing of the franchise agreement on 14 April 2008,” the team asserted.

Some of the stake was sold to Raj Kundra to diversify the ownership base, “as part of our strategy to broaden our shareholder base. In February 2009 Kuki Investments Ltd (Raj Kundra and Family) acquired an 11.7 per cent stake in EM Sporting Holdings Limited, the parent company of Jaipur IPL Cricket Pvt Ltd, which was fully disclosed to the BCCI/IPL.”

Transaction fee
The Royals said they were still waiting for the BCCI’s response regarding the precise amount of the five per cent transaction fee for the transfer of the shares.
“In February 2009 the Rajasthan Royals contacted the BCCI to agree on the precise definition, to agree on the amount that needed to be paid, and we are still awaiting a response,” the statement said.

Denying allegations of violating Foreign Exchange related laws, the team stated, “In accordance with regulatory filings, we subsequently volunteered to make a full disclosure application (in July 2009) through the Government’s FIPB (Foreign Investment Promotion Board) process, including details of the structure, now publicly available. Our application was not initially accepted due to a miscommunication of submission timings. Our subsequent application in January 2010 has not been rejected,” it was pointed out.