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This is not the first time Rajasthan Royals, winner of the inaugural edition of Indian Premier League (IPL) in 2008, has run into controversy. In 2010, the team was terminated by the Board of Control for Cricket in India (BCCI) for a brief period for alleged violation of the agreement. However, after it secured a stay order from the Supreme Court, BCCI allowed it into the league.
The team also was under the scanner for its promoter shareholding pattern. One of the co-promoters of Emerging Media, which owned the team, was Suresh Chellaram, brother-in-law of Lalit Modi (former IPL chief). As the Rajasthan Royals franchise was the cheapest of the eight franchises during the team auctions in 2008, it was alleged Chellaram was given a good deal, owing to his ties with then IPL chief Modi.
The franchise was owned and chaired by British businessman Manoj Badale. Other investors included Ryan Tkalcevic, Lachlan Murdoch, Aditya S Chellaram and Suresh Chellaram. The group had bought the franchise for $67 million. In early 2009, Shilpa Shetty and husband Raj Kundra reportedly paid $15.4 million for an 11.7 per cent stake in the franchise.
In 2010, the Enforcement Directorate had issued show-cause notices to Rajasthan Royals for alleged violation of the Foreign Exchange Maintenance Act. It was alleged Chellaram and Shilpa Shetty had flouted foreign exchange norms, through the Mauritius route.
In 2010, Shashank Manohar, then president of BCCI, had questioned the bid process through which the franchise was bought in 2008, naming Rajasthan Royals' major shareholders, Badale, as well as his company, Emerging Media. Manohar also alleged there was no evidence Shilpa Shetty and Raj Kundra had paid $15.4 million to buy stake in the franchise.
