Deccan Chronicle Holding Ltd. — the owner of the now defunct Deccan Chargers — has been awarded a compensation of ₹4814.67 crore plus 10% interest from 2012, by a Bombay High Court-appointed arbitration tribunal, on Friday.
“A Bombay High Court-appointed arbitration tribunal found, on Friday, illegal the termination of the Deccan Chargers IPL team by the Board of Cricket Control in India (BCCI),” it said.
“It may be mentioned here that the dispute arose in the fifth IPL season, when the BCCI issued a show cause notice for termination on August 11, 2012, over what the promoters alleged were “trivial matters”, the statement said.
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“The promoters also said it was a case of discrimination as other franchises that had actually indulged in illegal activities were only handed meagre penalties, or banned for two seasons,” the statement mentioned.
“The Deccan Chargers promoters were given 30 days to rectify matters, but the IPL in a meeting on the 29th day took a decision to terminate the franchise. The rectification happened on the 30th day itself, yet the BCCI chose to disregard it."
DCHL sought the termination to be set aside and claimed damages of Rs 6,046 crore plus interest and charges as per the terms of the agreement. BCCI countered with a claim of Rs 214 crore for the remaining five years of the ten-year contract (signed in 2008) as the franchise fee.
“The damages and compensation allowed by the arbitrator amount to Rs. 4,814.67 crore plus 10 percent interest per year from the date of the initiation of arbitration proceedings (in 2012) plus cost of Rs. 50 lakh. The BCCI's counterclaim was allowed in part. BCCI has yet to comment on the award,” the statement said.
It remains to be seen whether the BCCI will contest the verdict.
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