October 27, 2013 12:42:42 am
With Sahara group refusing to furnish the requisite bank guarantee,the BCCI decided to terminate Pune Warriors from the IPL after a meeting of its working committee. The decision to terminate Pune,owned by Sahara,would leave the IPL an eight-team affair for the time being.
Given Saharas continued position that it would not deliver the bank guarantee,the Working Committee unanimously determined to terminate the Sahara franchise agreement while taking whatever action was necessary to protect the BCCI position, BCCI Secretary Sanjay Patel said in a statement.
Sahara was due to furnish the guarantee of Rs 170.2 crore in March this year but has failed to do so despite five reminders. The BCCI Working Committee today discussed the situation regarding default by Sahara Adventure Sports (Sahara) in not submitting the bank guarantee for the the Pune franchise of IPL for the 2014, the statement read.
As per terms of this franchise agreement this bank guarantee was due for delivery in March 2013,more than six months ago. Over the last six months,the BCCIs advisors have written to Sahara on five separate occasions (in April,May,June,August and October) requesting that the bank guarantee be put in place,with the final letter being sent on October 8,2013, it added.
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The Pune Warriors have been on collision course with the BCCI after the Board encashed its bank guarantee for the 2013 season due to non-payment of franchise fee. After that,Sahara announced its pull-out from the IPL even though it is yet to formally convey this to the BCCI.
Sahara has been demanding the completion of the arbitration proceedings on the issue of franchise fee,which,it feels,should be lowered since the BCCI did not deliver on its promised number of IPL matches for the team.
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