A historic IPL franchise deal is facing fresh scrutiny just as it nears completion, with legal challenges threatening to complicate what would otherwise mark a landmark ownership transition.
According to a report by NDTV Profit, businessman Raj Kundra has formally approached the Board of Control for Cricket in India (BCCI), urging it to withhold approval of the Rajasthan Royals’ sale until ongoing disputes linked to shareholding and valuation are fully resolved.
Dispute emerges over ownership structure
At the centre of the issue is Kundra’s claimed 11.7% stake in the franchise, which traces back to his involvement during the earlier ownership phase. His legal team has questioned how that interest was handled in subsequent transactions, particularly around the transfer and valuation of shares.
The representation submitted to the BCCI calls for greater transparency on the franchise’s shareholding history, along with safeguards for minority shareholders. It also raises concerns over whether due process was followed in earlier stake transfers, with Kundra maintaining that his economic interest has not been extinguished in substance.
Parallel legal proceedings are already underway, including a case before the National Company Law Tribunal alleging oppression and mismanagement, as well as action in the Bombay High Court seeking urgent relief that could potentially restrain the transaction.
Sale structure now under review
The challenge comes at a critical juncture for the deal, which is yet to receive final approval from the BCCI. The board is now expected to examine whether the claims have any bearing on the validity of the ownership transfer.
Kundra’s position also contests the argument that any past divestment automatically nullifies his rights, with his legal side asserting that such actions must still comply with fairness, valuation standards, and shareholder protection norms.
Rajasthan Royals deal sets new benchmark
The development follows a major ownership shift in the IPL ecosystem, with Rajasthan Royals being acquired in a deal valued at US$ 1.63 billion (INR 15,322 crore), as previously reported by cricexec. The transaction involves a full buyout led by US-based entrepreneur Kal Somani, backed by a consortium of global investors with links to major US business families.
The transition is expected to come into effect after the conclusion of the IPL 2026 season, marking the end of the current ownership structure led by Manoj Badale and Emerging Media.
Somani’s move to full control builds on his earlier minority investment in the franchise, positioning the deal as part of a broader long-term play in the global cricket economy.
Regulatory decision now key
With the IPL’s governing body yet to formally clear the transaction, the situation places the BCCI at the centre of a complex intersection between commercial expansion and legal due diligence.
The outcome will not only determine the immediate future of the Rajasthan Royals ownership transition but could also set a precedent for how franchise sales involving historical disputes are handled in the league going forward
