Reports: BCCI to bring back Kochi franchise in IPL to avoid 900-crore payout

An IPL match in 2011 between Kochi Tuskers and Delhi Daredevils

If reports are to be believed, IPL 9 is very likely to see the return of Kochi Tuskers in place of one of the two suspended teams – Rajasthan Royals and Chennai Super Kings – with the other alternative on BCCI’s hands being to pay Rs 900 crore to Kochi Cricket Pvt Ltd (KCPL).

Kochi Tuskers Kerala was terminated by the BCCI in September 2011, the franchise being guilty of an inability to furnish a new bank guarantee for 2011. The act has been later found out to be wrong by a judicial investigation.

According to the June 2015 ruling delivered by arbitrator former Chief Justice of India RC Lahoti, the BCCI is to pay the franchise a total sum of Rs 384.83 crore in lieu of special and general damages incurred along with 18% annual interest for four years, return the Rs 153 crore bank guarantee to Rendezvous Sports World (RSW) and pay an additional Rs 72 lac for the legal fees incurred.

If damages incurred are calculated on compound interest over four years, the BCCI could be liable to pay Kochi close to Rs 900 crore – "more than what almost five of the eight IPL franchises are supposed to pay BCCI in 10 years", according to a BCCI official.

Kochi coming back only sensible option: BCCI official

BCCI officials confirmed that an out-of-court settlement with the Kochi franchise owners would be the best possible option at this stage, when the board is busy battling a crisis of confidence in the light of the Justice Lodha Committee report and other Enforcement Directorate and tax-related issues.

"The BCCI is in deep trouble. The only way forward is to settle it out of court," a senior board official said.

Another board official said, "If they decide to play, the worry over the possible inclusion of another team is taken care of. But more importantly, their coming back is the only way BCCI can stem the outflow of cash.

“The payments can be adjusted against their annual franchise fee. The amount is so big that even an out of court settlement sounds daunting,"

Owners of Kochi Tuskers Kerala, who are waiting to hear from the BCCI, refused to comment on the judgment. BCCI have until 22 September to respond to the judgment.