Why BCCI Has to Pay Rs 538 Crore to Kochi Tuskers’ Former Owners
The Bombay High Court has upheld two arbitral awards directing the BCCI to pay over Rs 538 crore to the former IPL franchise Kochi Tuskers Kerala’s stakeholders — Kochi Cricket Private Ltd (KCPL) and Rendezvous Sports World (RSW) — for wrongful termination of the team in 2011.
Here’s what the case was about, what the court ruled, and what it means for the BCCI.
Who are KCPL and RSW?
- KCPL and RSW were part of the consortium that owned Kochi Tuskers Kerala, an IPL franchise that played just one season (2011).
- Internal conflicts saw RSW later exiting the ownership, but both parties pursued claims after the BCCI terminated the team’s contract.
Why was Kochi Tuskers terminated?
- The BCCI ended the franchise agreement in September 2011, citing failure to furnish bank guarantees by the required March deadlines.
- KCPL disputed this, claiming the BCCI had waived the deadline through its actions and the termination was disproportionate.
What did the arbitrators say?
- In 2015, two arbitral awards were passed:
- KCPL: Rs 384.8 crore in damages + 18% interest + Rs 72 lakh in costs
- RSW: Rs 153.34 crore in damages + 18% interest
- Both ruled that BCCI’s termination was wrongful and amounted to a breach of contract.
Why did BCCI challenge it?
- BCCI argued the tribunal exceeded its powers.
- It claimed damages awarded were excessive and beyond contractual caps.
- It also questioned RSW’s standing under the Indian Partnership Act.
What did the Bombay High Court say now?
- Justice Riyaz I. Chagla dismissed BCCI’s challenge.
- The court said it cannot re-evaluate evidence or act as an appellate body over an arbitrator’s findings.
- Found no “patent illegality” in the arbitral awards.
- Granted KCPL and RSW permission to withdraw the deposited sums.
What happens next?
- BCCI has been given six weeks to file an appeal.
- If the decision holds, this will mark a major legal and financial setback for the cricket board.
Why This Matters
- This is a rare case where the BCCI has been held liable for its handling of an IPL franchise.
- The Kochi Tuskers episode has long raised questions about transparency and governance in the IPL’s early years.
First Published in The Hindu
