SARAVANA RAMESH
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New Delhi: As reported by CNN-IBN earlier today, the Indian Premier League's 2014 season will see eight instead of nine teams competing after the BCCI on Saturday terminated the Sahara Group-owned Pune Warriors India (PWI) at it's working committee meeting, after the franchise failed to furnish the bank guarantee.
"Given Sahara's continued position that it would not deliver the bank guarantee, the Working Committee unanimously determined to terminate the Sahara franchise agreement, while taking whatever action was necessary to protect the BCCI position," the board declared in a press release. PWI had insisted on arbitration with BCCI but no solution could be arrived at.
The Sahara Group had earlier in May announced its pull-out from the IPL after the BCCI encashed its bank guarantee due to non-payment of franchise fee. But Pune hadn't formally conveyed its pullout to the BCCI. BCCI terminates Sahara-owned Pune Warriors, IPL down to 8 teams PWI did not furnish the bank guarantee of Rs. 170.2 crore, after which BCCI announced its decision at the working committee meeting on Saturday.
The board wanted Sahara to furnish a bank guarantee of Rs 170.2 crore to remain part of the league next year. But Sahara reckoned the franchise fee should be lowered since the BCCI did not deliver on its promised number of IPL matches for the team. Pune was the most expensive team in the IPL, bought by Sahara for USD 370 million (approx Rs 1702 crore) in 2010.
Here's the complete text of the BCCI press release:
The BCCI Working Committee today discussed the situation regarding the default by Sahara Adventure Sports ("Sahara") in not submitting the bank guarantee of the Pune franchise of IPL for the 2014 season. As per the terms of its franchise agreement, this bank guarantee was due for delivery in March 2013, more than six months ago.
In August 2013 and pending arbitration, Sahara moved the Hon'ble Bombay High Court seeking an injunction on BCCI's right to terminate the franchise agreement as a result of Sahara's default in not delivering the bank guarantee. In its order of 5 September 2013, the High Court concluded that only if Sahara gave the Bank Guarantee as required by the Franchise Agreement could BCCI not terminate the agreement.
Over the last six months, the BCCI's advisors have written to Sahara on five separate occasions (in April, May, June, August and October) requesting that the bank guarantee be put in place, with the final letter being sent on 8 October 2013. In response, Sahara again refused to put in place the guarantee as per the franchise agreement. In order to proceed with the preparations for the 2014 season, it is important that BCCI now has certainty as to whether the Pune franchise will comply with the terms of its franchise agreement.
Given Sahara's continued position that it would not deliver the bank guarantee, the Working Committee unanimously determined to terminate the Sahara franchise agreement, while taking whatever action was necessary to protect the BCCI position.
Read more at: BCCI terminates Sahara-owned Pune Warriors, IPL down to 8 teams
"Given Sahara's continued position that it would not deliver the bank guarantee, the Working Committee unanimously determined to terminate the Sahara franchise agreement, while taking whatever action was necessary to protect the BCCI position," the board declared in a press release. PWI had insisted on arbitration with BCCI but no solution could be arrived at.
The Sahara Group had earlier in May announced its pull-out from the IPL after the BCCI encashed its bank guarantee due to non-payment of franchise fee. But Pune hadn't formally conveyed its pullout to the BCCI. BCCI terminates Sahara-owned Pune Warriors, IPL down to 8 teams PWI did not furnish the bank guarantee of Rs. 170.2 crore, after which BCCI announced its decision at the working committee meeting on Saturday.
The board wanted Sahara to furnish a bank guarantee of Rs 170.2 crore to remain part of the league next year. But Sahara reckoned the franchise fee should be lowered since the BCCI did not deliver on its promised number of IPL matches for the team. Pune was the most expensive team in the IPL, bought by Sahara for USD 370 million (approx Rs 1702 crore) in 2010.
Here's the complete text of the BCCI press release:
The BCCI Working Committee today discussed the situation regarding the default by Sahara Adventure Sports ("Sahara") in not submitting the bank guarantee of the Pune franchise of IPL for the 2014 season. As per the terms of its franchise agreement, this bank guarantee was due for delivery in March 2013, more than six months ago.
In August 2013 and pending arbitration, Sahara moved the Hon'ble Bombay High Court seeking an injunction on BCCI's right to terminate the franchise agreement as a result of Sahara's default in not delivering the bank guarantee. In its order of 5 September 2013, the High Court concluded that only if Sahara gave the Bank Guarantee as required by the Franchise Agreement could BCCI not terminate the agreement.
Over the last six months, the BCCI's advisors have written to Sahara on five separate occasions (in April, May, June, August and October) requesting that the bank guarantee be put in place, with the final letter being sent on 8 October 2013. In response, Sahara again refused to put in place the guarantee as per the franchise agreement. In order to proceed with the preparations for the 2014 season, it is important that BCCI now has certainty as to whether the Pune franchise will comply with the terms of its franchise agreement.
Given Sahara's continued position that it would not deliver the bank guarantee, the Working Committee unanimously determined to terminate the Sahara franchise agreement, while taking whatever action was necessary to protect the BCCI position.
Read more at: BCCI terminates Sahara-owned Pune Warriors, IPL down to 8 teams
