Bombay High Court halves Rajasthan Royals’ bank guarantee
The Bombay High Court on Tuesday halved the quantum of the security guarantee the IPL franchise Rajasthan Royals will have to furnish towards player payments for the next two years and to cover their contract with the Indian board.
The reduction – from $20.83 million to $10.63 million – will be see lessening of the franchise’s purse at next month’s player auction.
Monday’s order, by a vacation bench, altered in Rajasthan’s favour the original decision of the same court on December 14.
Justice S Vajifdar had upheld the interim stay granted by the arbitrator against the termination of the franchise by the BCCI, but had asked Rajasthan to fulfil, by January 3, certain conditions including raising a guarantee of $20.83 million from a nationalised bank in India – $18 million to cover the players’ salaries over the next two seasons and $2.83 million to cover any damages incurred by the BCCI in case the final ruling of the arbitrator went against the franchise.
In a fresh plea filed in front of Justice SJ Kathawalla Monday, Rajasthan’s counsel Janak Dwarkadas asked the court to slash the security guarantee since the franchise had retained two players – Shane Warne and Shane Watson – for a combined $3.1 million.
To support his claim he produced affidavits filed by the Australian pair, stating they did not need any bank guarantee towards their payments from the franchise.
That effectively reduced the franchise’s auction purse to $5.9 million but Rajasthan sought a further reduction, arguing that their average spend in the past three auctions was in the range of $3.9- 4 million.
