New Delhi: After a major boost when the Board of Control for Cricket in India (BCCI) won a legal battle against World Sports Group (WSG), it has suffered a big blow as the Bombay High Court-appointed arbitrator passed an award in favour of now defunct Indian Premier League (IPL) side Deccan Chargers which may see the Indian board having to shell out Rs 4,800 crore to Deccan Chronicle Holdings Limited (DCHL).
Speaking to IANS, a BCCI official said that the turn of events was surprising, but a final decision will be made only after going through the complete order. An appeal though is on the cards from the board against the award.
"To be honest it has come as a surprise and it would be fascinating to see what the Ld. Arbitrator has relied upon and one can only make a proper assessment only upon reading the order but you can be sure that the BCCI would go in appeal against this award since it does have a very good case," he pointed out.
The IPL Governing Council had terminated Deccan Chargers in 2012 and the Hyderabad franchise had challenged the ‘illegal termination'.
To go back to the case, Deccan Chargers had approached the Bombay HC and with an eye on the IPL franchise agreement, the process of arbitration started with Justice (Retd) C K Thakar as the sole abitrator. The DCHL had claimed damages of Rs 6,046 crore plus interest and charges as per reports.
The BCCI had obviously brought in it's own reasoning to the whole decision behind the termination and made its own claim.
Earlier, in a majority decision, an Arbitral Tribunal consisting of Supreme Court Justices (Retd) Sujatha Manohar, Mukunthakam Sharma and S S Nijjar have upheld the termination of the media rights agreement for overseas territories with World Sports Group (WSG) by the BCCI on June 28, 2010.
The BCCI had accused the then chairman of its IPL Governing Council Lalit Modi of committing fraud on BCCI in collusion with WSG officials to the tune of Rs 425 crore.
In a complete vindication of the hard stand taken by the BCCI office-bearers including N Srinivasan then Secretary, the Arbitral award has allowed the BCCI to appropriate the amounts lying in escrow pending the arbitration. This sum is to the tune of over Rs 800 crore.
P Raghu Raman Senior Counsel who represented the BCCI said: "Now that a binding arbitration award has clearly pointed out the fraudulent conduct of Lalit Modi and others from WSG group, the police complaint given by BCCI to prosecute these persons at least at this stage should be acted upon."