28 October,2010 08:52 AM IST | | Sai Mohan
On paper, they have been granted a 30-day deadline to settle their ownership dispute, but there's no secret in the fact that the Governing Council of the Indian Premier League (IPL) was forced to grant the consortium a lifeline due to a contractual obligation.
| Brothers and palms: Shailendra (left) with Satyajit Gaikwad at the media briefing recently |
>> The majority of investors are said to have agreed to Rendezvous' plea to bring down their 25 per cent free equity to 12.5 per cent, with Rendezvous investing the remaining 12.5. The Gaikwads are still adamant about holding on to their 25 per cent equity. They have minuted the details and sent it to BCCI. They have requested the Board to give them permission to make such structural changes.
>> It is learnt that BCCI initially considered the option of having Anchor Group (27 per cent owners) and Co. taking over the franchise, but that would have breached a clause in the original Unincorporated Joint Venture contract which clearly states that there cannot be any change in the shareholding pattern.
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>> Following that, Anchor Group and Co seem to have agreed upon having Satyajit Gaikwad ufffd CEO of Rendezvous ufffd as the single point contact for the franchise, despite the fact that they had been communicating with BCCI on a parallel level.
>> The IPL Governing Council cited clause 12(1) in the bidding document to grant the Kochi consortium an additional 30 days to register under the Companies Act. It was a mandatory process ufffd BCCI would have been violating provisions of the original contract if it had expelled Kochi without giving them a notice.
>> Forced to by the investors, the Gaikwads deposited a cheque, along with the UJC - paying for 12.5 per cent of their free equity. This cheque, though not encashed, is seen as a way for Gaikwads to instill confidence in the rest of the consortium.
>> According to a newspaper report, Shailendra Gaikwad (chairman of Rendezvous Sports Private Limited), signed on a changed agreement that allows the franchise to reduce their stake to 10 per cent (5 per cent free and 5 per cent paid). The investors apparently submitted this copy to the BCCI in their reply to the showcause notice that was slapped on them on September 29.
