IPL: Showcause to Royals, Punjab, Kochi

Agencies

New Delhi, 29 September 2010: The Board of Control for Cricket in India at its 81st AGM in Mumbai on Wednesday decided to serve showcause notices to three IPL teams - Rajasthan Royals, Kings XI Punjab and the new Kochi franchise - to explain their ownership pattern and source of funding.

 

The Jaipur-based Rajasthan Royals, champions in the first edition of the tournament, and suspended IPL commissioner Lalit Modi have faced allegations of financial irregularities after the IPL came under the government’s scanner.

 

This is not the first time that the BCCI is probing the Royals, who have repeatedly said that their ownership structure "is completely transparent and in accordance with regulatory guidelines issued by the Board".

 

According to the Royals, the current shareholders of Emerging Media Sporting Holdings Limited, "who all have multiple business interests and independent means, are as follows: Emerging Media (IPL) Ltd (Manoj Badale - 32.4 percent), Tresco International Ltd (Suresh Chellaram Family - 44.2 percent), Blue Water Estate Ltd (Lachlan Murdoch - 11.7 percent) and Kuki Investments Ltd (11.7 percent). There are no other shareholders." Chellaram is the brother-in-law of Lalit Modi.

 

 

Who owns Kings XI Punjab

 

The road is also not smooth for Mohali-based franchise Kings XI Punjab, who had earlier in the year been asked by the Punjab Registrar of Companies to explain why they had not submitted their accounts and tax details for the past one year.

 

Bollywood actress Preity Zinta and Bombay Dyeing’s Ness Wadia hold 23 per cent stake each, while the Chairman of the Apeejay Surendra Group Karan Paul holds four per cent.

 

Windy Investments owns 11 per cent stake. The company is owned by Mohit Burman, who is the director of Dabur India. Colway Investment, a company owned by Gaurav Burman, owns 23 per cent. Gaurav is Mohit’s UK-based brother and Modi’s son-in-law. Gaurav also has a stake in Global Cricket Ventures through a Mauritius subsidiary, so he also has web rights for the IPL.

 

Root Investments with four per cent is another stakeholder in the Punjab team. Root is owned by Shagun Khanna and she is the wife of Arvind Khanna, the Congress leader from Sangrur. Arvind’s brother, Aditya Khanna was investigated in the Volcker Scam.

 

It’s also important to note that the BCCI had in fact, put the Kings XI Punjab’s proposal to sell 93 per cent of its stake on hold in August, indicating that it could not go any further in this regard before the probe involving suspended IPL commissioner Lalit Modi ends.

 

Kochi not taking off

 

Meanwhile, the new IPL franchise - Kochi - that has been under the scanner ever since Rendezvous Sports successfully bid for the team will also be served a showcause notice.

 

The Kochi IPL team had a scare after Shashi Tharoor, who was highly supportive of the venture, lost his job as minister of state for external affairs after revelations that Sunanda Pushkar, now his wife, owned sweat equity in the team. The team, which was all set to finalise its name and coach, may well have to wait longer in light of the new developments.