The BCCI has terminated the franchise of Deccan Chargers after the owners,Deccan Chronicle Holdings Ltd (DCHL),failed to pay the Rs 100 crore bank guarantee to the cricket board.
The move came after the owners failed to honour the Bombay High Court condition of paying up a bank guarantee of Rs 100 crore by 5pm on Friday. The matter now goes to arbitration.
Earlier in the day,the Bombay High Court had refused to grant further time to DCHL to give an irrevocable and unconditional bank guarantee.
DCHL had urged Justice S J Kathawala to grant them time till October 15 to furnish the bank guarantee but the court refused saying the earlier deadline had been extended by three days to accommodate them and further time cannot be given.
Earlier,the DCHL had announced that the IPL franchise was sold to Mumbai-based real estate firm Kamla Landmarc Construction. The The deal was finalised by Jitendra Jain-promoted Kamla Landmarc and T Venkattram Reddy’s DCHL over the last few days. The size of the deal is yet to be confirmed.
In an announcement at the Bombay Stock Exchange,DCHL had said,”Pursuant to its Meeting of the Board of Directors held on October 11,2012,it was resolved to authorize the Board of Directors to sell,transfer/ dispose off the Deccan Chargers Franchise business undertaking(s)/ business division of the Company to Kamla Landmarc Real Estate Holdings Private Limited.”