Kamla Landmarc Real Estate, a Mumbai-based real estate firm, has bought Indian Premier League team Deccan Chargers for an undisclosed amount.
Deccan Chronicle Holdings Limited (DCHL) Friday informed Bombay Stock Exchange (BSE) that the board of directors of the company at its meeting held Thursday decided "to sell, transfer/dispose off the Deccan Chargers franchise business to Kamla Landmarc Real Estate Holdings Pvt Ltd".
The board meeting passed a resolution in this regard subject to the approval of the shareholders of the company. The decision will also be subject to the approvals from the concerned authorities, lenders and other third parties.
The Hyderabad-based company took the decision to sell the IPL franchise hours before the end of the deadline set by the Board of Control for Cricket in India (BCCI) for paying Rs.100 crore bank guarantee. The franchise has to pay the amount by Friday evening, failing which the team will be terminated from the IPL.
DCHL also informed of its decision to the BCCI, whose board is expected to meet soon to take a final decision.
"This is to inform you that pursuant to its Meeting of the Board of Directors held on October 11, 2012, it was resolved to authorize the Board of Directors to sell, transfer/dispose of the Deccan Chargers Franchise business undertakings/business division of the Company to Kamla Landmarc Real Estate Holdings Private Limited," the DCHL said in a letter to BSE.
"The above resolution of the board has been passed subject to the approval of the shareholders of the Company under Section 293(1)(a) of the Companies Act, 1956 read with Companies Rules 2001 and subject to the approvals, consents, permission and sanctions as may be necessary from the concerned authorities, lenders and other third parties," it added.
The BCCI had last month asked DCHL to find a buyer through an auction as the cash-strapped team was unable to pay even salaries to its players. Though P. Vara Prasad, a Hyderabad-based filmmaker and financier, came forward to buy the Chargers for Rs.900 crore, his bid was rejected by DCHL due to differences over the terms of payment.