Team owner withdraws from Mumbai T20 League
What's the story
The inaugural edition of T20 Mumbai league is set to kick off in less than two weeks, but it has already hit a roadblock with one of the team owners withdrawing from the league on Monday.
Naman Developers, which is Mumbai's one of the well known real estate firms, had bought a team for Rs. 6.5 cr but forfeited the contract within a week.
U-turn
Naman Develops backs out after Rs. 6.5 cr bid
Real-estate company, Naman Developers, was one of the 9 bidders for the six available teams but withdrew their offer after they figured out that the losses would be more than what they had been told to expect before buying a team.
Mumbai Cricket Association is struggling to find a new buyer especially since the tournament is set to begin on 10th of March.
In trouble
MCA is struggling to find a new buyer
Adding to the MCA's woes, the auctions of the player available for the league will be held on Wednesday and finding an owner post the auctions is not going to be an easy task.
MCA will encash the Rs. 1 crore given by the bidder and there is a possibility of them fielding their own team if they don't fetch a buyer.
Quote
Naman Developers were told loses would be close to 85%
"During the pre-bidding meeting, the interested teams were told that the loss of share will be 34% but later after the bidding got over, they were told it could go up to 85%." a senior MCA official told The Indian Express.
Stringent
Bank rules have become stringent after Nirav Modi scam
However, The Times of India claims that the real-estate firm backed out because they were not sure of submitting a bank guarantee.
The rules imposed by banks have become stringent in the aftermath of Nirav Modi-Punjab National Bank scam.
As per the league rules, owners are supposed to submit a bank guarantee of five times the value of the bid amount.