NEW DELHI: The most powerful cricket body in the world has yet again been forced to eat humble pie after falling at the wrong end of the stick on the legal front. Needless to say, it is a seriously expensive pie.
The Board of Control for Cricket in India (BCCI) is reportedly ready to cough up compensation of over Rs8 billion to IPL franchise Kochi Tuskers Kerala for terminating its contract in 2011, a massive mark-up on the Rs3 billion the team's promoters were initially willing to settle for.
The decision to pay up was taken at the IPL governing council meeting on Tuesday.
"Kochi Tuskers has demanded Rs850 crore (Rs8.5 billion) as compensation. Today (Tuesday) we discussed the matter at IPL GC meeting and we will now place the matter before the general body. Let them take a call but obviously some negotiations are needed," a PTI report quotes IPL chairman Rajiv Shukla as saying.
The decision to terminate Kochi contract was taken by the then BCCI president Shashank Manohar citing breach of franchise agreement. The Kochi Tuskers' owners had won an arbitration challenging BCCI's decision to encash bank guarantee citing breach of contractual agreement in 2015. However, for the past two years, BCCI chose neither to pay compensation of Rs5.5 billion stipulated by the RC Lahoti panel or take the franchise back in the IPL.
Before the Kochi Tuskers went in for arbitration, they had asked for a compensation of Rs3 billion. But the board refused to accede to the demand. It may now try to negotiate and bring down the compensation to an optimum level, says the report.