IPL: BCCI told to pay ₹4,800-cr penalty to Deccan Chargers

Forum Gandhi Mumbai | Updated on July 17, 2020

The Board of Control for Cricket in India (BCCI) has been asked to pay ₹4,800 crore for wrongfully terminating Deccan Chargers from the Indian Premier League.

On Friday, an arbitrator, appointed by the Bombay High Court, came to a conclusion that the BCCI’s decision was illegal and, therefore, the termination of the franchise could not have taken place.

The arbitration proceedings were being conducted before retired Justice CK Thakkar.

Termination ‘illegal’

“The arbitrator came to the conclusion that the termination is premature and illegal and, therefore, the termination of the franchise could not have taken place. Hence, the various claim DC has sought from BCCI is legal and, thus, the former is entitled for those reliefs. The total amount is ₹4,800 crore. BCCI has been directed to pay up before September,” a source said.

Deccan Chronicle was represented by Dhir and Dhir Associates, and BCCI by Maniar Srivastava Associates. BCCI is likely to challenge the arbitration award. “We haven’t received a copy of the award, so wouldn’t want to say anything on that. BCCI will decide future course after studying the award,” said Viraj Maniar, Partner, Maniar Srivastava Associates.

In 2012, Deccan Chargers was terminated by BCCI following which the Hyderabad-based team management filed a plea in Bombay High Court.

According to sources close to BCCI, “This oral order is shocking! It is a huge amount. Even Kochi Tuskers wasn’t awarded such a huge amount. Though the parties haven’t received the copy of the order, it is likely that it will be delivered to them in the course of the week. What is also prudent to be understood that on what grounds has BCCI been asked to cough out such a huge amount.”

“Our initial understanding at the moment is that BCCI is definitely not going to pay up such a huge amount. A petition will be filed under Section 34 of The Arbitration and Conciliation Act, 1996 which allows the party to challenge any award.”

Published on July 17, 2020

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