Arbitrator Asks BCCI To Pay Rs 4800 Crore For 'Wrongfully Terminating' Deccan Chargers From IPL

In a major embarrassment to the Board of Control for Cricket in India (BCCI), an arbitrator awarded over Rs 4,800 crore to Deccan Chronicles Holding Ltd (DCHL) in its dispute against the board over termination of the company's Indian Premier League (IPL) franchise team.

The arbitrator held the termination of franchise as illegal, DCHL lawyer said. After the BCCI conceptualised IPL T20 tournament in 2008, DCHL was declared successful bidder for franchise Deccan Chargers from Hyderabad, and an agreement was signed between Deccan Chargers and the BCCI for ten years.

ESPNcricinfo

But on August 11, 2012, the BCCI issued a show-cause notice for termination of the franchise to DCHL and the termination was confirmed a day before expiry of the 30-day period granted to respond to the notice, the lawyer said.

DCHL then approached the Bombay High Court claiming that the termination was arbitrary. The HC in September 2012 appointed retired Supreme Court Justice C K Thakker as the sole Arbitrator to decide the matter.

AP

The sole arbitrator on Friday upheld the termination to be illegal and granted damages to the tune of Rs 630 crores and compensation to DCHL to the tune of Rs 4160 crores.

"DCHL has also been granted Rs 36 crore as an admitted amount payable under the Franchise Agreement," said Maneesha Dhir, Managing Partner of Dhir & Dhir Associates, who appeared for DCHL. BCCI can challenge the arbitrators order before the Bombay High Court.