BCCI to pay Rs 800 Crore to Kochi Tuskers as compensation

The Board of Control for Cricket in India (BCCI) is set to pay a huge compensation of Rs 800 Crore to Kochi Tuskers, the disbanded franchise of Indian Premier League (IPL). It was terminated by the Indian board in 2011. But the owners had challenged the decision of termination and won an arbitration in 2015 to encash bank guarantee citing breach of the contractual agreement. BCCI was also adamant and they denied to pay the compensation amount and also did not take back the franchise in IPL.

The decision of terminating the contract of the franchise Kochi Tuskers by the then BCCI President Shashank Manohar citing breach of an agreement. It was also reported that many of the officials in the board were against it. The panel headed by RC Lahoti had directed BCCI to pay Rs 550 crore as compensation with 18 percent annual penalty on failing to do so. Also, the amount was increased up to Rs. 1500 Crores as the dues weren’t paid by the board.

All the legal options are exhausted

The decision to pay the huge amount was taken in the IPL Governing Council meeting and the news confirmed by the chairman Rajeev Shukla. “Kochi Tuskers has demanded Rs 850 crore as compensation. Today we discussed the matter at IPL GC meeting and we will now place the matter before general body. Let them take a call but obviously some negotiations are needed,” he said as quoted by Times of India.

“We have to pay Kochi compensation. All legal options have been exhausted. Normally when arbitration decision goes against you, it will be stupid to move Supreme Court appealing against it. We have no option but question is how much,” said another member present at the meeting. However, an angry official blasted Shashank Manohar who took the decision of terminating the franchise.

“It was one man’s obstinacy that is now costing us a bomb. Had Shashank not taken that decision, we could have worked our way out. In fact, before Kochi went to arbitration, they had asked for a compensation of Rs 300 crore. Even then our officials showed arrogance and now we will be forced to shell out more than double,” he said.