Bowing to criticism of the one billion dollar net worth criterion for the bidders, the Indian Premier League on Sunday cancelled the existing tender for two new franchises and decided to re-issue a new one on March 9 with relaxed pre-conditions.
IPL chairman and commissioner Lalit Modi told reporters after the governing council meeting of the Twenty20 League that the council had invoked clause 11.4 of the tender document and cancelled the existing tenders.
"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," Modi told a media conference.
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 $ 100 million performance deposit demanded from bidders to $ 10 million o 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. PTI
