Arbitration with the World Sports Group (WSG) brought a positive result for BCCI:
After a long time of exit of IPL commissioner Lalit Modi from BCCI, long-pending litigations occurring out of his well known controversial reign are falling in right place now for the Indian Cricket Board. On Monday (13-07-2020), one of this kind of arbitration brought a positive result with the World Sports Group (WSG).
On 28th June 2010, an arbitral team including Supreme Court Retd Justices, Mukunthakam Sharma, S.S. Nijjar, and Sujatha Manohar gave a green signal to the conclusion of the IPL media rights agreement for foreign countries with WSG by the BCCI.
This will give the Indian Cricket Board to proper amounts lying in collateral amount, approximately more than Rs 850 crore. This thing went to adjudication after the World Sports Group claimed over the profit they would have made, in case BCCI didn’t abandon the agreement. For the illegal conclusion of the agreement, they also wanted compensation. Still, BCCI said that it was a fraud.
Raghu Raman, senior counsel, who represented the Indian Cricket Board said: “It has proved that IPL commissioner Lalit Modi in conspiracy with World Sports Group official cheated, and deceived BCCI.”
The Indian Cricket Board (BCCI) had concluded its agreement (IPL foreign media rights) in the year 2010, the month of June with WSG, over disagreement occurring out of Rs 425 crore-facilitation fee pay-out. The Mauritius WSG got the media rights of IPL in a popular 3 am deal on March 15 2009 with the then-commissioner of IPL and were couldn’t find a broadcast partner.
MSM (Sony) came into a facilitation agreement of worth Rs 425 crore with the Mauritius WSG before they got the media rights of IPL from BCCI. The foreign rights stayed with WSG but on finding out the facilitation agreement, BCCI called it an ‘improper’ deal and reclaimed the rights.
Ultimately, Sony concluded the facilitation agreement with Mauritius WSG and said yes to pay Rs300 crores to the BCCI. The pending amount of Rs125 crore will be paid after getting from WSG. After ten years of removal of Lalit Modi, BCCI has got the facilitation amount and got the legal right over Rs 850 crore in the escrow account.
Raman said “ In the year 2010, the Indian Cricket Board (BCCI) had raised a complaint to Chennai police. Now a civil court has taken a decision that it is a fraud did by Lalit Modi and some of the officials of WSG.”