Mumbai: A purported letter written by former Rajasthan Royals co-owner Raj Kundra to the Board of Control for Cricket in India (BCCI) has surfaced, in which he called for an investigation into alleged financial irregularities linked to the franchise’s ownership structure.
The original ownership arrangement involved undisclosed transactions connected to Lalit Modi, Kundra has claimed.
This comes at a time when the team – the inaugural IPL champions – undergoes a major ownership change. Challenging the recent multi-billion-dollar deals, Kundra argued that his 11.7% stake in the franchise was never legally transferred following his 2015 suspension and that he still retains rights related to the shareholding.
Financial records point to transfers totaling USD 2.5 million into a bank account belonging to Manoj Badale, Kundra claimed.
The payments were connected to the funds used for Rajasthan Royals’ franchise acquisition from the BCCI in 2008, according to his accusations.
In his letter, Kundra stated that the transactions raise serious questions about the franchise’s original ownership structure. The undisclosed payments suggest that Lalit Modi may have held an unreported financial interest in Rajasthan Royals, which would be a violation of IPL and BCCI regulations, he claimed.
“Based on information supported by eyewitness testimony and financial trails, I have reason to believe that on 18 January 2008: Lalit Modi, through Lalit Modi Sporting Ventures, transferred USD 1.5 million to the Citibank account of Manoj Badale; Suresh Chellaram, via Kabu Holdings, transferred USD 1 million to the same account. These funds appear to be linked to the USD 5 million payment made to the BCCI in relation to the franchise acquisition,” Kundra wrote.
The transactions mentioned in his complaint were never properly disclosed to cricket authorities or regulators, he alleged, claiming that important banking records were withheld during previous investigations by the Enforcement Directorate (ED).
Urged the BCCI to act on the information, Kundra warned that he is prepared to take the matter to legal and regulatory authorities if no action is taken. He also stated that he can provide additional evidence and eyewitness testimony to support a full investigation.
“Please note that failure to act on this information may compel me to seek remedies before appropriate legal and regulatory forums, including placing these facts before judicial authorities. I am prepared to submit supporting material and produce eyewitnesses to assist in a full and fair inquiry. The credibility of the IPL and the governance standards of the BCCI are at stake,” he wrote.
In 2009, Kundra acquired an 11.7% stake in Rajasthan Royals alongside his wife, Shilpa Shetty. His involvement with the franchise ended after the 2013 IPL spot-fixing scandal, which resulted in a lifetime ban for him and a two-year suspension for Rajasthan Royals.
The Rajasthan Royals recently completed a major ownership deal, despite filing complaints, despite complaints being filed with the National Company Law Tribunal (NCLT), as reported by Cricket Addictor.
A consortium led by Lakshmi Niwas Mittal and Adar Poonawalla acquired a 93% stake in the franchise for $1.65 billion.
While the BCCI’s lifetime ban on Kundra remains in place, preventing him from taking part in IPL ownership or administration, the country’s top cricket body will review the allegations raised in his letter about Rajasthan Royals’ early ownership and financial transactions, it has been reported.
