BCCI calls CSK transfer sham, tells SC Srinivasan will not be allowed to attend meetings

New Delhi: While refusing to adjudicate the ‘conflict of issue’, the Supreme Court on Monday made it clear to the BCCI that it is open for the Board to stick to its position that N. Srinivasan cannot attend the meetings as conflict of interest still persists notwithstanding his claim that he had divested India Cements shares in Chennai Super Kings.

A Bench of Justices T.S. Thakur and Ibrahim Kalifulla told senior counsel K.K. Venugopal, appearing for the BCCI that it is for the Board to handle on its own matters relating to N. Srinivasan’s conflict of interest in cricket administration.

Pointing out that the January 22 judgment is self explanatory and did not suffer from any ambiguity, the bench said the clarification sought by the Board is misconceived. Mr. Venugopal, said BCCI stands by its view that the restructuring of CSK shares by Mr Srinivasan does not hold water and that he will not be allowed to participate in any of its meetings as he is still in conflict of interest. He said the shares were being transferred to two Trusts, in which non-promoters hold 71 per cent shares and 29 per cent shares by cricketers.

When the BCCI revealed its stand the Bench said “it should stand by its view, whatever it is, about Mr Srinivasan and not rush to the Supreme Court every time something happens.”

The BCCI sought clarification pursuant to Srinivasan seeking to attend the working committee meeting on August 28 representing the Tamil Nadu Cricket Association as its President. In a brief order, the bench said it is for the BCCI to decide whether conflict of interest still exists with Srinivasan and it is not for the court to constantly monitor the case.

Criticising the board for rushing to the court for clarification, the Bench asked “Why did you come to us. You want our stamp on your decision. If you have taken a decision on Srinivasan, stick to it. If Srinivasan has a problem, let him seek remedy.”

It said the developments (relating to Srinivasan divesting ICL shares in CSK) are post January 22 judgments. The BCCI is free to take a view or if it had already taken a view that Srinivasan continues to suffer from ‘conflict of interest’ as the restructuring of CSK by divesting of shares is a sham transaction and that he cannot attend the working committee of any other meeting of the Board as long as such a decision is not upset by any judicial proceeding.

We do not see any reason to entertain these applications in a disposed of matter or to refer the issue to Justice R.M. Lodha committee, whose final report is yet to be submitted. The parties are free to vindicate their rights before appropriate forum and we do not express any opinion on the merits of the issue, the bench said.

Senior counsel Kapil Sibal, appearing for Srinivasan and senior counsel C.S. Vaidyanathan for India Cements, disputed Mr. Venugopal’s contention that restructuring of CSK was a sham and said there is no conflict of interest after the divesting of shares. They drew the court’s attention that no resolution was passed by the Board that Srinivasan cannot attend the working committee meetings.

Mr Sibal, however, said he is withdrawing the applications seeking action for perjury against BCCI Secretary and other deponents of the wrong affidavit. Senior counsel Nalini Chidambaram, for Cricket Association of Bihar wanted a declaration that Srinivasan cannot hold the post of President of TNCA as conflict of interests continues. The Bench, however disposed of all the applications.