"The BCCI has read in media reports that Sahara has purported to terminate its franchise agreement and to pull out of IPL, the 2014 season onwards. The BCCI has had no direct communication from its franchisee, Sahara Adventure Sports Limited, in this regard.
The BCCI can however confirm that, in order to satisfy the balance of the 2013 franchise fee of 120 crore, which was overdue and owing to BCCI since 3 April 2013, it has encashed part of the bank guarantee put in place by Sahara Adventure Sports Limited.
The IPL Governing Council met with representatives of the franchisee on 21 February 2013 and received assurances that the franchisee would settle all obligations as they fell due. Once the 3 April 2013 due date had passed, the Governing Council had two letters sent to Sahara Adventure Sports Limited - one on 12 April 2013 and the second on 24 April 2013 - requesting settlement of the overdue amount. No payment was made and no response was received to the second letter and so, in order to protect its interests, the BCCI was forced to encash the guarantee.