India Cements looking to CSK team to a new subsidary company
Updated - Feb 12, 2015 11:26 am
India Cements looking to CSK team to a new subsidary company: The Indian Premier League (IPL) season 8 schedules were released yesterday and as we saw that both the teams under scare of a ban the Chennai Super Kings (CSK) and the Rajasthan Royals (RR) continue to feature in the league. It has also been learnt that the N Srinivasan owned India Cements which originally own the CSK franchise has decided to transfer the ownership of the franchise to a new company being subsidiary of India Cements.
The move comes after; the Supreme Court of India on January 22 rejected the amendment to the clause 6.2.4 in the BCCIs constitution that approved the board officials to have a commercial interest in the IPL and the Champions League T20. The rule under scrutiny was amended in September 2008, months after N Srinivasan who was the BCCI secretary then had bought the Chennai franchise.
The Hindu reported that the India Cements board has approved the decision and all the shareholders of the IC have been offered a share in the new company Chennai Super Kings Ltd, as they plan to demerge it and form a new company to manage the franchise.
N Srinivasan after the India Cements Board meeting reportedly told the Hindu, “This is the first step to slowly getting India Cements into a pure-play cement company.”
“The ownership of Chennai Super Kings Cricket Ltd will go to shareholders.” As the shareholders have an option of selecting to move into the new company and carry the equal share that they have in India Cements or can choose to stay back in the cement company.
This will first be sent to the BCCI as a proposal, though the approval by the cricket board does not stand final as the Supreme Court of India will have the final say in the issue. The case on the IPL spot fixing also dragged in conflict of interest matter before the SC and since then the court has asked a committee led by Chief Justice of India RM Lodha to decide on the seriousness of the crime and award punishment to those found guilty.
Srinivasan has been given a clean chit in the case but his Son-in-Law Gurunath Maiyeppan who was the-then team principal of the CSK has been held guilty of betting during the IPL and waits for the committee report deciding his future.
The way SC takes this move and whether it approves or rejects the formation and transfer of franchise into a new company will have a final word in the matter.