BCCI to incur heavy loss, asked to pay 12 crore to Nimbus

BCCI to incur heavy loss, asked to pay 12 crore to Nimbus: Retired Chief Justice of India SH Kapadia the sole arbitrator appointed by court validated Nimbus Communications’ profess worth $ 1.8mn (approximately 12 crores) against the Board of Control for Cricket in India (BCCI) for inappropriate termination of the broadcast deals between the two parties. The procedure that was drawn to a conclusion on 31 August, began in October 2013.

Kapadia, the arbitrator has asked the BCCI to settle the claims put on by Nimbus with interest and cost. The overall amount of the claim is 11.88 crore – Rs 9,81,09,800 as principal the interest of 9% per annum will be added from October 28, 2013 till the date of payment. The charges of revoking bank guarantee commission was included as well.

The Board had terminated a six-year broadcast agreement with Nimbus in December 2011. The deal starting from 2009 was worth 2000 crore, but was terminated due to payment issues. Nimbus approached the court to capsize the decision soon after. Since then the matter has gone into arbitration and according to a Nimbus insider, if things go its way the broadcaster could make a profit of Rs 4000 crore ($600 million) including the interest.

The first arbitration hearing was won by Nimbus in the month of August last year and BCCI was told to pay 10 crore to the broadcaster following the expenses of hiring equipment and technical services. After the decision the BCCI had dared the verdict in Bombay High Court but the appeal was put down by Justice RD Dhanuka.

Though the BCCI will again seek an appeal in the Bombay High Court after the latest verdict, said a BCCI insider. The last two verdicts are a huge issue for the BCCI taking in account the claim which is yet to be decided and it is expected to be a much bigger amount.

This is not the only incident of a financial issue for the BCCI there have been numerous other setbacks. Other than the Nimbus cases, BCCI had also lost an arbitration hearing recently. The loss came in excess of Rs 550 crore for terminating IPL franchise Kochi Tuskers Kerala.