Former Rajasthan Royals co-owner Raj Kundra has initiated legal action against current owner Manoj Badale and Emerging Media Ventures. In a public statement, Kundra has filed a petition alleging shareholder harassment and financial mismanagement, warning Badale that the dispute will be resolved in court.
Rajasthan Royals were recently sold in a deal worth $1.65 billion. A consortium led by Lakshmi Mittal and Adar Poonawala acquired a majority stake in the IPL franchise. Following the ownership change, legal action was taken in London on behalf of minority shareholders over the transaction.
Raj Kundra alleges financial mismanagement in Rajasthan Royals sale
Raj Kundra, who bought 11.7% stake in Rajasthan Royals in 2009, has accused Emerging Media Ventures (EMV) of financial mismanagement and shareholder oppression. In a public statement, he alleged that key details regarding the final sale price of his shares were deliberately hidden from him.
“I have remained silent for years as the truth about my investments in Emerging Media and my stake in Rajasthan Royals emerged behind closed doors. That silence should never be construed as acceptance. It is my position that I have been deprived of the real value of my shareholding.”
Kundra’s association with the IPL came under scrutiny in 2013 when he was accused of illegal betting during the tournament. Following an investigation by the Justice Lodha Committee appointed by the Supreme Court of India, he was banned for life from all cricket-related activities in 2015.
Justice Lodha Committee has also suspended Rajasthan Royals from IPL for two seasons. As a result, the franchise did not participate in the 2016 and 2017 editions of the tournament.
Raj Kundra moved NCLT, wrote to BCCI
Raj Kundra has filed a petition before the National Company Law Tribunal (NCLT) in Mumbai, alleging harassment and mismanagement against Manoj Badale and others associated with Emerging Media Ventures. He also said that he has submitted documents to BCCI demanding an independent review.
“I have preserved documentary evidence supporting my position, including evidence that I allege shows that the actual value received from the sale of my shareholding was not disclosed to me, while attempts were made to settle my claim at a significantly lower price. That evidence will be presented to the appropriate investigative and judicial authorities.”
England court’s decision adds another twist to the legal dispute
Earlier this month, the High Court of England and Wales ordered Raj Kundra to repay $4.94 million to Emerging Media Ventures and barred him from pursuing proceedings in India over his former Rajasthan Royals shareholding.
The decision came after EMV completed the sale of controlling stake in the franchise at a reported $1.65 billion valuation. Kundra has continued his legal challenge and accused Manoj Badale of failing to protect his interests as a minority shareholder.
“Acting as a proxy and fiduciary in relation to my stake in Rajasthan Royals, Manoj Badale had a duty to protect my interests. It is my case that this duty was breached and my trust was betrayed. The truth does not fear investigation. The evidence will speak for itself. See you in court, Manoj Badale.”
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