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Kochi CEO says RSW was offered $50 mn to exit

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Sanjay JogSwarup Chakraborty Mumbai
Last Updated : Jan 21 2013 | 2:33 AM IST

A key player in the Modi-Kochi-IPL-Tharoor controversy said there were several attempts by some agents to stop Rendezvous Sports World (RSW) from bagging the Kochi franchise and then to get it aborted.

The Kochi team’s CEO and Rendezvous promoter Shailendra Gaikwad told Business Standard that immediately after winning the franchise (on March 21), there was an upfront offer of $50 million (Rs 223 crore) to exit. “We were offered $50 million to give up our claim on the Kochi franchise,” he said.

RSW had emerged as a surprise winner for the franchise when the bidding for two new teams for IPL's 2011 season was held in Chennai. Five companies were in the fray for the new teams: Adani, Videocon, RSW, Cyrus Poonawalla with builder Ajay Shirke, and the Sahara group.

RSW had placed its bid for the Kochi franchise at $333 million (Rs 1,533 crore). Sahara bid $370 million (Rs 1,702 crore) and won the Pune franchise. Videocon and Adani had bid at $320 million and $315 million, respectively, for the Pune and Ahmedabad franchise but failed to qualify.

Calling the entire Modi-Kochi-Tharoor issue uncalled for, Gaikwad said it was highly objectionable on Lalit Modi's part to disclose information on the social networking site, Twitter. Modi had raised questions on the stakeholders of the Kochi franchise, saying there was an issue with some people receiving free equity in the franchise.

“This entire issue has been made out of a non-issue. The Gaikwads have not invested Rs 225 crore in the Kochi franchise. We have been offered 'sweat' equity for the hard work we have put in for over a year and this is not 'free' equity,” said Gaikwad.

Gaikwad said all documents had been given, as required under the rules, at the time of bidding and they were ready to provide more information if that was needed. “We had submitted all professional and legal information at the time of the bid document and if there is any further information that the IPL Governing Council needs, we are ready to furnish it,” Gaikwad said.

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First Published: Apr 15 2010 | 12:24 AM IST

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