New Delhi: The promoters of Indian Badminton League (IBL) are mulling legal action against the Badminton Association of India (BAI) for its "unlawful" termination of the agreement between the two parties for running the tournament.
Media reports on Wednesday suggested that BAI has terminated the agreement with the promoters of tournament - Sporty Solutionz Pvt. Limited (SSPL).
"SSPL, commercial rights holders and promoters of IBL as their first reaction will like to maintain that this act of the BAI is unlawful, unwarranted and against the very basics of the Indian Badminton League Agreement, which the BAI and the Maharashtra Badminton Association have signed with the promoters of IBL (SSPL) for a period of 10 years," release from the company said on Thursday.
"SSPL legal counsels are studying the case and will respond with an appropriate legal action against BAI and the Maharashtra Badminton Association.
"However, in the best interest of IBL, players and sports lovers SSPL is open to dialogue for an amicable resolution of the issue. SSPL is also open for a discussion on any platform," the release added.
SSPL also claimed that BAI's demand for a sum of Rs.50 crore as bank guarantee was against the IBL agreement.
The company also claimed that they have honoured all its commitments and have no defaults on its part.
IBL made its debut in 2013 but was not held next year due to problems between the company and BAI. During the annual meeting held last month, BAI decided to give a 15-day notice to Sporty, asking it to provide guarantee money of Rs.50 crore.
The company said inspite of its tall demand, they agreed on a sum of Rs.15 crore as bank gurantee but BAI are yet to communicate on it.
"Post discussion a sum of Rupees fifteen crores was agreed as the Bank Guarantee. This was captured in SSPL's last communication to the BAI on March 10, 2015. Response from BAI was awaited on this."