Balance-sheets of IPL franchisees in order: Govt

The government said the Registrar of Companies has not found anything wrong with the balance-sheets of IPL teams and no company has given sweat equity.

updated: April 28, 2010 15:13 IST
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New Delhi:

Amid a controversy over finances of the Twenty20 cricket body IPL, the government on Wednesday said the Registrar of Companies has not found anything wrong with the balance-sheets of IPL franchisees and no company has given sweat equity to anyone.

"Prima-facie as far as balance-sheets are concerned we can say there is nothing of unnatural... No sweat equity issues have been found either," Corporate Affairs Minister Salman Khurshid said after a meeting with regional RoCs, who were earlier asked to look into the ownership pattern of each IPL team.

Khurshid also said some franchisees have not been up-to-date in terms of filing of balance-sheets and RoCs have issued notices to them to do so by May three, or face proceedings under the Companies Act.

"We have checked with the RoCs. In some cases, they (IPL franchisees) are up-to-date with filings and in some cases they are not. Wherever they are not up-to-date we have issued notices and given time up to May 3," he said.

"We will initiate proceeding as per the Companies Act," he said when asked what will be the action if these companies do not file balance-sheets by the stipulated time.

Asked which franchise has not filed annual returns, he said: "I don't remember the name but companies like Chennai franchise (promoted by India Cement), Mumbai Indians' owner Reliance Industries have filed."

He added that as and when more information is collected and if some irregularities are found, the matter will be investigated.

The third edition of IPL was embroiled in controversies, including allegations about the union ministers influencing the auction of IPL franchisees.

Shashi Tharoor resigned as Union Minister of State for External Affairs over allegations that he influenced award of sweat equity to his friend Sunanda Pushkar in the Kochi team.

The authorities have since launched probe to trace the finances of the cricket body and its franchisees.