The BCCI is set to pay a massive compensation of more than Rs 800 crore to disbanded IPL franchise Kochi Tuskers Kerala for terminating their contract in 2011.
"Kochi Tuskers has demanded Rs 850 crore as compensation. We discussed the matter at IPL General council meeting and we will now place the matter before general body. Let them take a call but obviously, some negotiations are needed," IPL chairman Rajiv Shukla said after the meeting. Kochi Tuskers owners in 2015 had won an arbitration challenging BCCI decision to encash bank guarantee citing breach of the contractual agreement.
The RC Lahoti headed panel had directed BCCI to pay Rs 550 crore as compensation with 18 percent annual penalty on failing to do so. For the past two years, BCCI was adamant in neither paying compensation nor taking back the franchise in the IPL.
"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 the question is how much," an influential IPL GC member told PTI after coming out of the meeting.
The decision to terminate Kochi contract was taken by the BCCI President Shashank Manohar citing breach of franchise agreement, something majority of BCCI officials were against.
"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," the angry official further added.