According to Cricbuzz, the BCCI has sent the CVC Sports matter to the Solicitor General of India, Tushar Mehta, who represents the board in non-government-related matters.
CVC Sports, which paid INR 5625 crores for the Ahmedabad franchise, has yet to sign the dotted line and receive a Letter of Intent from the BCCI. The American company has been attempting to persuade the BCCI that its investment in a UK betting company is unlawful.
The BCCI's referral of the CVC Sports case is an obvious result of statements made by Lalit Modi, the former IPL chairman, who questioned the decision when news of the American firm's interest in a betting operation in the United Kingdom arose. Clearly, the impasse concerns whether the decision to give the franchise to CVC would withstand legal examination in India, as well as whether the company's investment in the United Kingdom will serve as a barrier.
Solicitor General Mehta's initial suggestion is thought to be good, but he also encouraged the BCCI to seek a second legal opinion. While it is unclear whether the board has sought a second view, sources close to the situation say the subject will be resolved soon, with a committee of legal professionals working on it.
If there is any more delay, the retention deadline for the existing eight IPL teams, which is November 30, may be extended by a week to give both new franchises, Ahmedabad and Lucknow, an equal amount of time to sort out their own retentions/picks.
No formal message had been sent to the eight teams until Sunday night (November 28), when they were urged to submit their retention list as soon as possible in order to meet their requirements to the official broadcaster.
IPL Controversy: IPL's new franchise CVC Capital faces trouble for its ties to Betting Companies
CVC Capital secured the Ahmedabad franchise in the IPL 2022 after outbidding the Adani Group. CVC are a private equity firm that has made significant investments in betting enterprises around the world.
CVC Capital Partners, which had been honoured the Ahmedabad franchise by the BCCI in Dubai on Monday earlier this week, has been criticised for its ties to betting firms. It has been noted that CVC Capital has made significant investments in betting and gambling enterprises.
Because of the 2013 betting and match-fixing scandal, the IPL is already contaminated. After the Supreme Court charged some of their top executives with corruption, the Chennai Super Kings and Rajasthan Royals were banned for two seasons.
In such circumstances, offering a new club to a foreign firm with significant betting and gambling interests could be deadly for BCCI. According to Indian law, gambling and betting are prohibited.
According to Outlook top sources, BCCI's attention had been attracted to CVC Capital's business activities, which they said were strangely overlooked throughout the lengthy "verification step" before the financials were opened on Monday evening.
CVC Capital placed the second-highest bid for the Ahmedabad franchise (INR 5600 crores). They beat out the 'favourites,' the Adani Group, who offered INR 5100 crores. The RPSG Group paid a hefty 7090 crores for the Lucknow franchise.
CVC Capital Partners is a private equity and investment consulting firm based in Europe and Asia that has raised nearly US$ 111 billion in secured commitments across private equity, credit, and growth since its founding.
Lalit Modi criticises the Indian Cricket Board for allowing CVC to own a team in the IPL
Lalit Modi, the former founder and chairman of the Indian Premier League (IPL), has raised concerns about CVC Capital Partners' participation in the cash-rich T20 league due to its involvement in organisations involved in betting activities.
Lalit Modi was surprised by the fact that the BCCI has yet to make a decision on CVC Capitals' purchase of an IPL team, and believes that money has played a significant role in any decision. He went on to say that the BCCI is ruining the tournament that he had founded years ago.
Modi criticized the Board of Control for Cricket in India (BCCI) for "reducing the game to a great joke" in a hard-hitting tweet.
"This #bcci sure are taking there time in deciding on a betting company buying a @iplt20 team. I guess greed is over taken any thing rational. This is just reducing the game to big joke. #clowns. I made it. They destroy it. #jokers," he wrote in a post he tweeted a couple of weeks ago.
CVC, which describes itself as a "global leader in private equity and finance with USD 125 billion in assets under management," paid INR 5625 crore for the Ahmedabad-based franchise in the world's greatest T20 league, which will be formed soon.
According to the company's website, it has investments in sports betting companies such as Tipico and Sisal. In India, gambling is not permitted. CVC has previously invested in Formula One and now has Premiership Rugby stakes.
Lalit Modi expressed his dissatisfaction with the BCCI's decision to allow CVC Capitals to buy an IPL franchise in a twitter post, and he noted the issues with allowing a betting corporation to own an IPL club. From the first edition of the IPL in 2008 till 2010, Lalit Modi was the chairman.
Modi had previously questioned the BCCI's decision, calling it "a calamity waiting to happen" in a tweet.
“A DISASTER WAITING TO HAPPEN IF #BCCI DECIDES TO ALLOW @cvc_capital_partners to own a team. A betting company. Has no morals. U should know that. I thought we had zero tolerance. Seems not. @iplt20 #cricket #fixing #itsnotallaboutmoney. I should know,” he maintained in his previous tweet.
He had previously advised India's cricket board to "do their homework.”
"I suppose betting companies can own a team in the @ipl." There has to be a new regulation. One of the qualifying bidders controls a large betting company, according to reports. So, what's next? @BCCI doesn't seem to be doing their homework. In such a case, what can anti-corruption do?" Modi sent out a tweet.
The Lucknow-based franchise was won by RPSG Group, who paid a hefty INR 7,090 crore for it. The IPL will have ten teams starting in the 2022 season.