India Cements to consider revamp of proposed subsidiary CSK

Company has completed required documentation for transfer of the IPL franchisee to a wholly-owned subsidiary

India Cements Ltd has said that it has completed the required documentation for transfer of its Indian Premier League (IPL) franchise Chennai Super Kings (CSK) to the wholly owned subsidiary -- Chennai Super Kings Cricket Ltd.

The company today informed Bombay Stock Exchange that it has completed the required documentation and further, the Board would consider reorganisation proposals relating to the subsidiary, at the meeting on February 11, 2015.

This comes after the recent Supreme Court judgement which observed that the Amendment in the rules permitting the Administrators of BCCI to acquire or hold commercial interests in BCCI like IPL, Champions League and T-20 held to be bad for various reasons.

It may be noted that the Supreme Court has sought the BCCI to hold elections within six weeks from the date of the order on condition that no one who has any commercial interest in the BCCI events (including N Srinivasan) shall be eligible for contesting the elections for any post whatsoever.

The Court observed that India Cements, which has been the owner of CSK is promoted by N Srinivasan and family and this has created a conflict of interest. Meanwhile, the India Cements has started its process of hiving off the IPL franchise to a wholly owned subsidiary even before the Supreme Court order was pronounced.

The Board of India Cements, in its meeting on February 11, will also consider the proposal for reappointment of Rupa Gurunath, wholetime director of the company, said the announcement.