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Rose Valley, a deposit-taking company, had a two-year deal of about Rs 12 crore with actor Shah Rukh Khan’s Red Chillies Entertainment. Under the agreement, KKR players were supposed to wear jerseys with the Rose Valley logo.
In a SMS message, KKR MD and CEO Venky Mysore said, “Rose Valley’s contract ended in 2013. So the question on non-renewal does not arise. They will not be on board this year.”
Khan has shot advertisements for Rose Valley resorts in West Bengal. A 25-seat dedicated corporate box was set up at the Eden Gardens stadium during KKR matches. Also, three players of KKR were also supposed to endorse the Rose Valley brand.
According to sources, Rose Valley is not keen on continuing, as the company is struggling with its finances and can't afford to shell out such a huge amount.
KKR is owned by Red Chillies Entertainment, promoted by Shah Rukh Khan, Juhi Chawla and her husband Jay Mehta.
Gautam Kundu, chairman of Rose Valley, had told Business Standard: "The deal with KKR was for two years but we haven't thought about whether to renew it.."
A source close to the development said, "The Saradha scam surely had an impact on our business and that is still being felt. But the recent controversies relating to the Sahara group have also deterred Kundu's plans and the firm is trying to stay away from limelight."
After the Saradha chit fund scam got busted last year, deposit raising companies have been under pressure. The hotels and entertainment division of Rose Valley runs a holiday membership plans for common tourists. Ever since the Saradha scam surfaced, companies have been flooded with applications for early redemption and some of such firms chose to impose hefty fines for premature withdrawals, as there were no proper laws governing the deposit-taking business.
However, KKR is not alone and many football clubs emerging from the state were primarily funded by deposit-taking companies who have been under pressure to sustain the business. Leading football teams such as East Bengal and Mohun Bagan had to slash budget for building teams, resulting in many foreign players choosing to shift into other teams.
The Saradha group was one of the key sponsors for Mohun Bagan, while Rose Valley was one of the sponsors for East Bengal.
