BCCI justifies decision to terminate Deccan contract

The BCCI on Saturday sought to justify the decision to terminate the IPL contract of debt-ridden Deccan Chargers, saying it was compelled to take action after the beleaguered franchise claimed that it had not committed any breaches and threatened to take legal recourse.

The BCCI said the decision to terminate the IPL contract of Deccan Chargers was taken after "careful deliberation" and only due to the absolute inability of the franchise to effectively run the team.

In a late night development yesterday, the BCCI cracked the whip on the cash-strapped Deccan Chargers by terminating the contract, ending the suspense on the fate of the beleaguered franchise. The decision was taken at an emergency Governing Council meeting of the IPL in Chennai.

"BCCI was compelled to hold an emergency meeting of the IPL Governing Council late Friday evening to discuss certain developments due to the Deccan Chargers' defaults," Board secretary Sanjay Jagdale said in a press release.

"This evening (Friday), BCCI has received a lawyers notice invoking arbitration from the franchise stating that it had not committed any breaches and even if such breaches were committed, the BCCI should not act to terminate the franchise till Yes Bank Ltd furnishes sufficient finance to cure the breaches.

"By this, Deccan Chronicle Holdings Ltd has clearly admitted its inability to cure its breaches within the time stipulated in the BCCI notice despite every bit of assistance from the BCCI. Since the month of May, BCCI has received repeated assurances that the overdue player fees would be paid; all of these promises have been unfulfilled," Jagdale said.

Jagdale said the BCCI made every effort to save the beleaguered franchise which also rejected the sole bid that was received at the auction.

"Despite the Bombay High Court appointing a court officer to act as Observer at the opening of the tender, which was conducted under the aegis of the BCCI to save the beleaguered franchise, Deccan Chronicle Holdings Ltd rejected the bid that was received in the amount of Rs 450 crores cash and an equal sum in convertible debentures. This was despite the bidder meeting the eligibility criteria of the BCCI," Jagdale said.

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