Debt-ridden Deccan Chargers' bid to find a buyer ended in an anti-climax on Thursday with the IPL team rejecting the only bid they received, leaving the future of the beleaguered franchise uncertain.
Deccan Chronicle Holdings, the owner of Deccan Chargers, reportedly received a bid of Rs 900 crore by PVP Venture Capitals but surprisingly chose to reject it at the auction as it considered the price and terms unsuitable.
The BCCI has now been forced to take a decision on the fate of Chargers at its Working Committee meeting on September 15.
"The price and terms of payments were not acceptable to Deccan Chargers. The BCCI assisted the Deccan Chargers and we also looked at the eligibility criteria, whether they are fit and proper.
"We found that the party was acceptable to us. After that it was between Deccan Chargers and the bidder, there the BCCI was not involved. But they informed us that the price and terms were not suitable, so they didn't accept it," BCCI President N Srinivasan told reporters.
Asked if a new tender will be floated since the lone bid has been rejected, Srinivasan said, "You have to ask Deccan Chargers, now it's upto them. The franchise is on (exist). The BCCI has issued a notice to the franchise to clear certain defects. We have given them some time, but that is between BCCI and the franchise."
The BCCI later issued a press release and said the Board had no role in Chargers' decision to reject the bid.
"The bid that was received by Deccan Chronicle Holdings Limited met the BCCI's eligibility and suitability criteria. The bid was then reviewed by Deccan Chronicle Holdings Limited who, in its discretion and with no role being played by BCCI, rejected the bid on the basis of the payment terms offered by the bidder," BCCI Secretary Sanjay Jagdale said in the release.
Deccan Chronicle Holdings purchased the Hyderabad franchise for Rs. 428 crore in 2008. At the auction, the base price was said to be around Rs 750 crore.
The winning bidder had to meet BCCI's eligibility criteria and other requirements. This was the first time an entire IPL franchise has been put on the block by its owners, although Rajasthan Royals sold a small stake in 2009 to the actress Shilpa Shetty and her husband Raj Kundra.
According to the tender notice, which had appeared a few days' back in national newspapers, "under this invitation to tender issued by DCHL, the winning bidder will acquire from the DCHL on an "as is where is" basis the right to own and operate the IPL team currently known as Deccan Chargers, which is and will continue to be based in Hyderabad and which competes in the Indian Premier League and which has the opportunity (if applicable and subject to qualification) to compete in each and any CLT20 which is staged from 2013 onwards".
The term "as is where is" means that the new buyer will have to use the name Deccan Chargers and will have to clear the liabilities of the current owner.
According to the IPL constitution, 5 per cent of the bidding amount will be acquired by the BCCI.
Earlier in June, DCHL had appointed investment banking institution, Religare to find a potential buyer but they were unable to find one, who would readily buy the team with its financial liabilities.