Aaron Moores | cricket20
Despite planning legal action the Rajasthan Royals and Kings XI Punjab lost their IPL statuses after the BCCI found a number of clear violations of the IPL franchise agreement after an in depth review.
The charges laid out by the BCCI include ownership discrepancy’s which violated clauses 10.1, 10.2 (a) and 10.3 of the franchise agreement which was signed by the Royals and Kings XI in 2008.
The BCCI issued both franchises with show causes after doubts emerged about their true ownership structures after Lalit Modi’s public war of words with former Union minister of state for External affairs Shashi Tharoor over the ownership structure of Rendezvous Sports world.
Having conducted a thorough investigation the BCCI found both franchises guilty of violating the franchise agreement on three counts including, vitally; the clear ownership structures.
Both franchises were found to have changed owners on two separate occasions despite the franchise agreement not allowing any transfer of ownership during the first three years of the tournament.
According to the show causes issued by the BCCI; the Royals restructured its ownership structure in March 2008 and in January 2009 which resulted in Emerging Media (IPL) Limited; winners of the franchise during the IPL franchise auction in 2008 with no shares in Jaipur IPL Cricket Private Limited, owners of the Royals franchise.
The Kings XI also restructured their ownership structure twice in 2008 which saw ownership of the franchise transferred to Dabur Investment Corporation Limited and Windy Investments Limited.
Two months later in June the share holdings of Dabur and Windy dropped to 23%, with Preity Zinta, Ness Wadia, Karan Paul, Colway Investments Limited and Root Invest Private Limited taking control of the other 77% of the Kings XI.