The Board of Control for Cricket in India (BCCI) has terminated the contracts of Rajasthan Royals and King's XI Punjab IPL teams. As a result of this the two teams will be barred from participating in the IPL 4 next year.
The Board has issued a notice to the Kochi franchise and given them more time to get their house in order and incorporate a company.
The decision was taken during the emergency meeting of the IPL Governing Council in Mumbai
Talking exclusively to a TV channel, Rajasthan Royals' co-owner Raj Kundra said that it was a sad development and "the termination of the contract by BCCI is shocking."
He further said that there are heavy investments involved in the franchise and they will now fight a legal battle.
It was unanimously decided that the Franchise agreements with K.P.H. Dream Cricket Pvt. Ltd. (King's XI Punjab) and Jaipur IPL Cricket Pvt. Ltd. (Rajasthan Royals) will be terminated based on the Legal opinions obtained by BCCI in the matters.
BCCI president Shashank Manohar said that the agreements were cancelled for violation of franchise agreement.
"The decision was based on legal opinion received by the Board and on facts", he added.
About the Kochi franchise he said that they have been given 10 more days to settle their disputes as they have not breached any agreement.
He showed confidence in the multi-million dollar T20 league saying that brand IPL will not suffer due to these developments.
"It was unanimously decided that the franchise agreements with K P H Dream Cricket Pvt Ltd (Kings XI) and Jaipur IPL Cricket Pvt Ltd (Rajasthan Royals) be terminated forthwith based on the Legal opinions obtained by BCCI in the matters," the BCCI said in a release.
"It was further unanimously decided to issue a notice to the unincorporated joint venture holding the Kochi franchise calling upon them to resolve all their disputes and form a company which will hold the IPL franchise rights." PTI