New Delhi: The Supreme Court has directed BCCI to pay Rs 550 crore as compensation to the disbanded Kochi Tuskers IPL team for contract termination.
The ruling came after BCCI appealed against the decision of the panel headed by R.C. Lohati in the apex court. The Supreme Court has also directed the national cricket governing body to pay the compensation with 18% annual penalty.
Kochi Tuskers earlier won the arbitration challenging BCCI decision to encash bank guarantee citing breach of contractual agreement. The franchise had approached the arbitration demanding a compensation of Rs 850 crore.
In 2015, The Lohati panel had directed BCCI to pay a compensation of Rs 550 crore along with an annual penalty of 18 percent in case BCCI fails to make the payment. BCCI had however remained adamant in paying the amount for the following two years.
The decision to disband Kochi Tuskers from IPL was taken back in 2011 with the insistence of then BCCI president Shashank Manohar. This was despite the majority of the BCCI officials expressing discontent with the move.
According to an IPL official, Rendezvous Sports World – the equity holders of Kerala Tuskers- had demanded a compensation close to Rs 300 crore prior to approaching the arbitration. With all legal options now getting exhausted, BCCI will be forced to pay more than double that amount.