Reports: Raj Kundra to offload his stake in IPL franchise Rajasthan Royals
Raj Kundra set for Rajasthan Royals exit after reports emerged of him agreeing to offload his share in the IPL franchise
Rajasthan Royals co-owner Raj Kundra has decided to offload his stake in the franchise, according to reports. The report does not come as a surprise after Kundra’s involvement in the IPL corruption scandal was established earlier and him indicating back in November 2014 that he was willing to give up his stake till the allegations against him are cleared.
According to ESPNcricinfo, a letter was submitted by the Royals management to the IPL authorities requesting to allow them to change the ownership structure of the Rajasthan-based franchise.
According to a BCCI insider, Royals are moving cautiously ‘knowing the sensitivity of the matter’. The insider added that the BCCI is likely to discuss Royals' letter during its AGM in Chennai on March 2. He said, “They will reveal the future course of action only if they get the permission.”
Kundra agreed to give up his stake in RR till allegations against him were cleared
“Applicant (Kundra), being a man of his words, hereby agrees to transfer his ownership in the shares of Jaipur IPL Cricket Private Limited in the custody of this Hon'ble Court or to such person, as may be appointed by the Hon'ble Court,” a Supreme Court affidavit had said back in November 2014.
“He agrees that in such a scenario, he will receive back the shares, or any benefit thereof, only in case he is cleared of all of the present allegations. However, the applicant clarifies that the above mentioned act is without prejudice and should in no manner be considered as an admission of guilt or as an acceptance of the said report.”
Royals, due to their connection with the first commisioner of the IPL Lalit Modi, have always been under the scanner. Modi’s brother-in-law, Suresh Chellaram’s family owns the biggest stake in the Royals.
Royals is co-owned by Tresco International Ltd. (Suresh Chellaram’s family – 44.2%), Emerging Media Ltd. (Manoj Badale – 32.4%) Blue Water Estate Ltd. (Lachlan Murdoch – 11.7%) and Kuki Investments Ltd. (Raj Kundra and family – 11.7%).
It remains unclear if Kundra’s 11.7% stake in the Royals’ parent company would be divided among the other three shareholders or if it would be sold off to a new investor.