Deccan Chargers likely to face axe despite having found a buyer

The Deccan Chronicle Holdings Limited may have sold their IPL franchise Deccan Chargers to a Mumbai-based real estate company, Kamla Landmarc, but the trouble is not over yet. The Bombay High Court has now put down a condition for the sale to go ahead.

The Hyderabad franchise needs to pay up Rs 100 crore bank guarantee to the BCCI by 5pm today, failing which the team will be terminated. According to sources, no bank has so far came forward to pay the guarantee.

On Friday morning, the owners decided to sell the Chargers after a meeting of the Board of Directors. The new owners, Kamla Landmarc, a reputed real estate company in Mumbai, is said to have agreed to a deal of nearly Rs 1000 crore.

The owners wrote to National Stock Exchange of India Limited and Bombay Stock Exchange Limited informing about the deal. Soon after the announcement, the shares of DCHL climbed 4.92 per cent to Rs 9.60 on the BSE.

"This is to inform you that pursuant to its Meeting of the Board of Directors held on October 11, 2012, it was resolved to authorize the Board of Directors to sell, transfer/dispose of the Deccan Chargers Franchise business undertakings/business division of the Company to Kamla Landmarc Real Estate Holdings Private Limited," the letter said.

"The above resolution of the Board has been passed subject to the approval of the shareholders of the Company under Section 293(1)(a) of the Companies Act, 1956 read with Companies, Rules 2001 and subject to the approvals, consents, permission and sanctions as may be necessary  from the concerned authorities, lenders and other third parties," the letter further said.

However, the BCCI is vouching for its termination due to insolvency and insecurity to players.