The Board of Control for Cricket in India, cornered in the Kochi Tuskers Kerala termination case, is ready to pay over INR 800 crore compensation to the franchise. The Kochi Tuskers management is, however, seeking the reinstatement of the disbanded franchisee.
“It is established that the BCCI was at fault in terminating our contract. As a consequence, we have suffered severe damages. No amount of money can compensate the harassment and loss of goodwill we have suffered. The amount BCCI is agreeing to pay now cannot even suffice the loss of opportunity to earn and consolidate suffered by us in the past six years,” a senior franchise management executive told insidesport.co.
“When it is established that the termination is bad in law, the unlawful act on BCCI’s part can only be compensated by reinstatement of our franchisee,” he insisted. “We will not settle for anything less than the reinstatement of our team. This compensation is not good enough even for the losses have suffered.”
The BCCI had terminated the Kochi Tuskers’ contract in 2011, citing a breach of the agreement, and encashed the bank guarantee furnished by the franchise. The warring parties had referred the matter to an arbitration panel headed by the former Chief Justice of India, Justice RC Lahoti. The arbitration panel had directed BCCI to pay INR 550 crore as compensation and an 18% penalty per annum if the board fails to abide by the order.
The Board, which was adamant to not pay the compensation to the franchise or reinstate the team, has now decided to pay an enormous sum of over INR 800 crore to the Kochi Tuskers Kerala team owners for terminating the contract six years ago.
“Kochi Tuskers has demanded Rs 850 crore as compensation. Today we discussed the matter at IPL governing council meeting and we will now place the matter before general body. Let them take a call but obviously, some negotiations are needed,” IPL chairman Rajiv Shukla reportedly said after the meeting.
Meanwhile, some senior BCCI officials are blaming the former board president and the present International Cricket Council chief Shashank Manohar for the entire fiasco. “We have to pay Kochi compensation. All legal options have been exhausted. Normally when arbitration decision goes against you, it will be stupid to move Supreme Court appealing against it. We have no option but the question is how much,” an IPL GC member has been quoted as saying soon after the meeting.
“It was one man’s obstinacy that is now costing us a bomb. Had Shashank not taken that decision, we could have worked our way out. In fact, before Kochi went to arbitration, they had asked for a compensation of Rs 300 crore. Even then our officials showed arrogance and now we will be forced to shell out more than double,” the official added.
Even as the franchise is not considering the compensation agreed by the BCCI adequate for the losses it has suffered, the board is expecting to further negotiate with the Kochi Tuskers management.