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The Board of Control for Cricket in India (BCCI) has terminated the contract of Pune Warriors India with the Twenty20 cricket Indian Premier League (IPL) for failing to furnish a bank guarantee worthRs 170 crore for the next season. Sahara Adventure Sports is the team’s franchise owner.
The decision was taken at the BCCI working committee meeting held here on Saturday.
In 2010, the Pune franchise was bought by the Sahara Group for $370 million, making it the most expensive IPL franchise.
A statement issued by BCCI Honorary Secretary Sanjay Patel said that under the franchise agreement, the bank guarantee from Sahara was due in March this year.
In August, Sahara moved the Bombay High Court seeking an injunction on the board’s right to terminate the franchise agreement.
Bank guarantee
“In its order of September 5, 2013, the Court concluded that only if Sahara gave the bank guarantee as required by the franchisee agreement could BCCI not terminate the agreement,” the statement said.
It said that over the last six months, BCCI’s advisors wrote to Sahara on five occasions requesting that the bank guarantee be put in place, with a final letter sent on October 8. Sahara, however, refused.
Given Sahara’s position that it will not furnish the bank guarantee, the BCCI Working Committee unanimously terminated the franchise agreement, the statement said.
Pune Warriors is one of two IPL franchises from Maharashtra, the other being Mumbai Indians.
It was inducted into the IPL during the 2011 season, alongside the now defunct Kochi Tuskers of Kerala.
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