Deccan Chargers’ owners reject lone bid

first_imgA huge question mark hung against the debt-ridden Deccan Chargers’ future on Thursday after the owners of the Indian Premier League franchise rejected the lone bid they received. Now, the BCCI will decide the franchise’s fate on Saturday.The Deccan Chronicle Holdings Limited (DCHL) rejected the bid from the Hyderabad-based film production house PVP Ventures, owned by Potluri Vara Prasad. PVP, also the producers of the new Kamal Haasan-starrer Viswaroopam, reportedly bid Rs 900 crore for the franchise.A lenders’ consortium, led by ICICI Bank, Yes Bank and Axis Bank, could come into play now, after reportedly petitioning the BCCI that it should be allowed to run the franchise for at least one year. DCHL owes a reported Rs 4,000 crore to many lenders.DCHL, which had bought the franchise for $107 million at an auction in 2008 before the first edition of the IPL, rejected the bid as it reportedly didn’t like the terms of payment.”The bid that was received by DCHL met the BCCI’s eligibility and suitability criteria. The bid was then reviewed by DCHL who, in its discretion and with no role being played by BCCI, rejected the bid on the basis of the payment terms offered by the bidder,” said a BCCI statement.Though there were reports of media mogul Kalanidhi Maran of Sun TV evincing interest in buying the team, the network has denied them. Later, some prospective bidders, including the RPG group, too backed out. What could have deterred them was the issue of having to clear the massive dues owed by the current owners.The tender was floated on September 6 by DCHL, under the aegis of BCCI, and the process was monitored by the Bombay High Court-appointed MD Narvekar.The IPL governing council will discuss all options on Saturday when it meets in Chennai to decide on the future course of action. Floating of a new tender cannot be ruled out, though BCCI president N Srinivasan declined to comment, saying that it was an issue between the Board and DCHL. “The franchise is on (it exists). The BCCI has issued a notice to the franchise to clear certain defects. We have given them some time, but that is between BCCI and the franchise,” he told reporters.”One bidder was eligible from the BCCI’s point of view. But after opening the price bid, Deccan Chronicle decided that the price as well as the terms of payment was not acceptable. So, they rejected the bid.”On Saturday, there will be as many four BCCI meetings. Apart from the IPL governing council, the working committee and marketing committee will also meet to tackle all possible situations. A special general body meeting has also been called the same day.The process begins with the governing council, and if it takes any decision, it will have to be ratified by the working committee and possibly the general body.Deccan Chargers has not been able to pay salaries to its players and coaches for the 2012 IPL held in April-May.advertisementlast_img

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