The BCCI Working Committee today terminate Pune Warriors India contract from Indian Premier League. BCCI discussed the situation regarding the default by Sahara Adventure Sports in not submitting the bank guarantee of the Pune franchise of IPL for the 2014 season. As per the terms of its franchise agreement, this bank guarantee was due for delivery in March 2013.
In August 2013 and pending arbitration, Sahara moved the Hon’ble Bombay High Court seeking an injunction on BCCI’s right to terminate the franchise agreement as a result of Sahara’s default in not delivering the bank guarantee. In its order of 5 September 2013, the High Court concluded that only if Sahara gave the Bank Guarantee as required by the Franchise Agreement could BCCI not terminate the agreement.
The BCCI’s advisors have written to Sahara on five separate occasions over the last six months (in April, May, June, August and October) requesting that the bank guarantee be put in place, with the final letter being sent on 8 October 2013. In response, Sahara again refused to put in place the guarantee as per the franchise agreement.
In order to proceed with the preparations for the 2014 season, it is important that BCCI now has certainty as to whether the Pune franchise will comply with the terms of its franchise agreement. Given Sahara’s continued position that it would not deliver the bank guarantee, the BCCI Working Committee finaly determined to terminate Pune Warriors India's franchise agreement.
