CSK will now be owned by a subsidiary of India Cements, Chennai Super Kings Cricket Ltd.
Having been informed by the Supreme Court that he cannot contest Board of Control for Cricket in India (BCCI) elections until he gives up ownership of Indian Premier League (IPL) team Chennai Super Kings (CSK), N Srinivasan-led India Cements will now transfer CSK to a new subsidiary, Chennai Super Kings Cricket Ltd.
In a filing to the Bombay Stock Exchange (BSE), India Cements said it has completed the required documentation for transfer of the Chennai Super Kings (CSK) franchise to Chennai Super Kings Cricket Ltd. "The board will consider at the meeting on February 11, 2015 reorganisation proposals relating to the said subsidiary," it said.
Earlier on September 26, 2014, the board of directors of the company had approved the proposal to demerge CSK into a wholly-owned subsidiary of the company, by transferring its net assets at cost. It had also stated that the effective date of transfer will be January 1, 2015.
Last month, a Supreme Court bench of Justice TS Thakur and Justice FMI Kalifulla had assailed the amendment in BCCI rules permitting cricket administrators, like Srinivasan, to have any commercial interest by owing teams in IPL and Champions League, and said it would be conflict of interest.
The apex court had also directed that BCCI elections be held in six weeks "subject to the condition that no one who has any commercial interest in BCCI events (including N Srinivasan) shall be eligible for contesting the elections for any post whatsoever."
The rider in the judgement made it difficult for Srinivasan to become BCCI president, unless he quickly relinquished his interest in the CSK.
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