BCCI terminates franchisee Deccan Chargers

The BCCI today terminated the troubled IPL franchisee Deccan Chargers, despite owner Deccan Chronicle Holdings Ltd (DCHL) having sealed its sale to a Mumbai-based real estate firm for nearly Rs1,100 crore.

The BCCI move comes following the failure of the owners to honour the Bombay High Court's deadline of furnishing a bank guarantee of Rs100 crore by this evening 5 pm, which resulted in the dissolution as per the Bombay High Court' s earlier order.

While the BCCI had little confidence in the ability of the franchisee to furnish the guarantee due to insolvency issues, the DHCL earlier in the day authorised its board of directors to sell the franchise.

"Pursuant to its meeting of the board of directors held on October 11, it was resolved to authorise the board of directors to sell, transfer or dispose of the Deccan Chargers Franchise business undertaking, business division of the company to Kamla Landmarc Real Estate Holdings Private Limited," DCHL said in a filing to the BSE.

Earlier today, the Bombay High Court refused to extend the time it had given to DDHL to furnish an irrevocable and unconditional bank guarantee of Rs100 crore to BCCI regarding IPL franchise Deccan Chargers, the DNA newspaper said in a report.

The report  said DCHL urged justice SJ Kathawala to grant them time till 15 October to give the bank guarantee but the court turned down the plea saying the earlier deadline had been extended by three days to accommodate them and further time could not be given.