IPL annuls team bids and existing tender

<img border='0' align='left' title=' ' src='http://www.ndtv.com/convergence/images/thumbnail/ver1/i/ipllogonew1.jpg' class='caption'> The IPL's governing council has deferred unveiling the two franchises and decided to cancel the existing tender. New tender will be out on March 9.

Updated: March 07, 2010 14:56 IST
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The much-hyped bidding for the Indian Premier League's two new franchises fell flat as the IPL's governing council deferred unveiling the teams and decided to cancel the existing tender.

The decision was taken after a meeting held at Four Seasons in Mumbai which was attended by Bollywood stars Saif Ali Khan and Kareena Kapoor along with Videocon Industries' Venugopal Dhoot.
All existing tenders have been returned to the bidders without being opened.

"The bids that were received were returned without being opened. New tenders would be issued on March 9 and the fresh bids are to be submitted at 10 am on March 21 at Chennai which would be opened at 11 am," IPL Commissioner Lalit Modi told a media conference.

New tender will be out on March 9 with the submission deadline of March 21. A few changes have been made in the conditions of the new tender that will be out on March 9. The IPL has removed net worth clause of $1 billion as well as the advance guarantee of $ 100 million.

The IPL chief said a lot of letters had been received from various interested parties pointing out that the pre-condition of bidders having a net worth of one billion dollars was not there when the first tendering process was initialised two years ago while selling the existing eight franchise teams.

"The governing council decided to remove this clause from the new tender and reduce the USD 100 million performance deposit demanded from bidders to 10 million USD to be submitted on the 20th. It was five million USD at the first tender but the valuation has gone up now," he said.

Modi also said that 100 per cent bank guarantee demanded from the bidders when they are successful has been reduced to 10 per cent rolling back guarantee to be paid withing 48 hours which is on par with the first tendering process.

"The base price of USD 225 million remains the same. The base price was not the issue," he said.

The IPL Chairman later told PTI that though he was disappointed with the cancellation of the tender it was the combined decision of the IPL governing council.

"Of course I am disappointed. But it was the decision of the governing council," he said.

Sources revealed later that only three bids had been received by the IPL and one of the bidders was consumer durables major Videocon which had bid USD 300 million.

Videocon MD Venugopal Dhoot said that though his firm had fulfilled all the conditions laid out in the tendering process he had "no grievances".

"I have no grievances though we had fulfilled all requirements. I will be there on the 21st (for submitting a new bid," he told reporters.

Modi also said that all those who had bought the tender documents paying Rs five lakh each have the option of taking back the amount or it will be adjusted when they opt for the new tender document which is to be issued on Tuesday.

However, the minimum bid amount remains the same at $225 million which is almost double of the costliest IPL team Mumbai Indians, bought by Mukesh Ambani for $111.9.

The cities that were in the race were Indore, Pune, Ahmedabad, Dharamsala, Nagpur, Kanpur, Cuttack, Vizag, Rajkot, Kochi, Baroda and Gwalior.

(With PTI inputs)

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