BCCI to take legal opinion on CSK's low demerger valuation

The Board of Control for Cricket in India on Sunday decided to seek a fresh legal opinion on the controversial "low" valuation of the Indian Premier League team Chennai Super Kings when it demerged from its parent company India cements, headed by former Board president Narayanswami Srinivasan.

The decision was taken at a meeting of the BCCI Working Committee in Kolkata after questions were raised about the demerger valuation of CSK post the recent Supreme Court verdict in the IPL spot-fixing case.

An amount of Rs 5 lakh was recorded as the valuation of Chennai Super Kings's demerger. The issue was also debated at the IPL Governing Council meeting in New Delhi.

IPL chief operating officer Sundar Raman was asked a few questions by some of the GC members about the "weird valuation" of the de-merger, as they were paying an annual franchise fee of Rs 40 crore and spending Rs 60 plus crore as players' remuneration.

"The Committee decided to seek a fresh legal opinion on the demerger and transfer of shares of CSK for further action," a BCCI release said.

Sources said that former BCCI president Shashank Manohar, who attended the meeting as a special invitee, debated the issue with Tamil Nadu Cricket Association (TNCA) vice-president P S Raman.

"Manohar asked Raman by what logic the valuation was done at just Rs 5 lakh when the market value is no less than Rs 1500 crore," the source said.

It has also been learnt that Baroda Cricket Association president Amarjit Sinh Gaekwad, said to be a supporter of sidelined Srinivasan, was not allowed to attend the meeting.

Photograph: BCCI