N.Srinivasan, the newly-appointed president of the Board of Control for Cricket in India (BCCI), took over on Monday and immediately terminated Kochi Tuskers' contract after the Indian Premier League (IPL) franchise, despite repeated reminders, defaulted on a Rs.156 crore annual payment it was to make.
"Because of the irremedial breach committed by the Kochi franchise, the BCCI has decided to encash the bank guarantee in their possession and also terminate the franchise. We have terminated the franchise because the breach is not capable of being remedied," said Srinivasan after the AGM.
The franchise was bought by a consortium comprising some Gujarat-based businessmen for a whopping Rs.1,550 crore last year. According to the rules, franchises have to pay the amount in 10 equal instalments.
Kochi has been in the news right from the start due to a rift between the owners, who also wanted to shift the team's base to Ahmedabad. The BCCI, in the past, had also turned down Kochi Tuskers' request to cut down their franchise fees.
Move shocks fans
Meanwhile, cricket lovers in Kerala have expressed their shock following the ban.
Former state cricket captain P.Balachandran said: "We got the IPL team after a lot of heart burns with regards to the ownership issue. And finally when we got it, many felt the issues have been solved."
"This had brought lot of cheer to numerous youngsters who felt that they would eventually get a chance to play top class cricket. Now it appears things have gone from bad to worse, with today's decision."
Shashi Tharoor, who had done considerable spade work for the team tweeted, "my role was2bring an IPL team2Kerala. Running it was not my responsibility &cldn't be. What a mess the management made of it!"
Mess could get uglier
Kochi Tuskers have now threatened legal action against the BCCI.
Kochi Tuskers director Mukesh Patel said they don't have any dues outstanding and in fact the BCCI owes them Rs.12-15 crore next month as a share in the central revenue.
"We don't have any outstanding dues with the BCCI. The termination is illegal. We will take them (BCCI) to court. In fact, the BCCI will be paying us Rs.12-15 crore next month as a part of our central revenue," said Patel.