The Bombay High Court on Monday allowed Royals to deposit $7.8m as guarantee with an additional security deposit of $2.83m, reducing the overall guarantee by almost half. The BCCI has given its consent for the same. Royals had insisted that the bank guarantee should be reduced because the guarantee provided for the 2011 IPL could be used as a rolling guarantee for the following year too.
Earlier, the high court had permitted RR to take part in IPL 4 and directed them to pay a $20.83m bank guarantee, as argued by the BCCI counsel.
Royals are now allowed to participate in the player auctions scheduled for January 8 and 9 and in fact are now being kept in the loop by the BCCI as far as all internal communication of IPL - between the board and the franchisees - are concerned.
Meanwhile, the board has released the money - to the tune of Rs 35 crore - that was due to the franchise. In turn, the franchise says they've also almost finished the process of paying pending player dues.
"We had already begun paying the players from our own pockets but now, after the BCCI money has come in, we've settled it all," says Raghu Iyer, the chief marketing officer of the franchise.
Whether or not Kings XI Punjab intends to do something similar is not known as yet.
