London: Businessman Raj Kundra has suffered a major legal setback after the High Court of England and Wales ordered him to repay $4.94 million (around Rs 42 crore) to Emerging Media Ventures (EMV) and permanently barred him from pursuing legal proceedings in India over his former shareholding in the Indian Premier League (IPL) franchise Rajasthan Royals.
The ruling comes months after Emerging Media Ventures completed the sale of a controlling stake in Rajasthan Royals to a consortium led by billionaire Lakshmi Mittal and Serum Institute of India CEO Adar Poonawalla at a reported valuation of $1.65 billion (around Rs 14,000 crore), making it one of the biggest transactions in IPL history.
Court rules in favour of Emerging Media Ventures
Justice Griffiths of the High Court of England and Wales ruled in favour of Emerging Media Ventures, concluding that Raj Kundra had “no realistic prospect” of successfully defending the company’s claim.
The court also found no evidential basis for Kundra’s allegations that either the 2015 Share Transfer Agreement or the 2019 Settlement Agreement had been obtained through fraud or unconscionable conduct.
According to the judgment, Kundra entered into both agreements voluntarily and was represented by legal counsel during the process.
Ordered to repay $4.94 million
The High Court ordered Raj Kundra and Kuki Investments to jointly and severally repay $4.94 million, along with applicable interest, to Emerging Media Ventures.
The court held that EMV had validly terminated the 2019 settlement agreement after determining that Kundra had repeatedly breached its terms.
The repayment effectively reverses the settlement amount that Kundra had received when he relinquished his claims over the Rajasthan Royals shareholding.
Permanent injunction against Indian proceedings
The judgment also makes permanent an anti-suit injunction first granted earlier this year.
The order restrains Raj Kundra and Kuki Investments from pursuing proceedings before the National Company Law Tribunal (NCLT), the Bombay High Court or initiating any related legal action in India concerning the Rajasthan Royals shareholding dispute.
The court ruled that such proceedings violated the exclusive jurisdiction clause contained in the 2019 settlement agreement, under which all future disputes were required to be resolved exclusively by English courts.
Dispute linked to Rajasthan Royals stake sale
The legal dispute resurfaced after Emerging Media Ventures completed the sale of a controlling stake in Rajasthan Royals to a consortium led by Lakshmi Mittal and Adar Poonawalla.
Kundra had alleged that he was compelled to exit his former 11.7% stake in the franchise at a value significantly below its eventual worth and sought to challenge the transaction through legal proceedings in India.
He also made public allegations against EMV and its co-founder Manoj Badale, while reportedly attempting to halt or delay the completion of the share sale.
Background of the case
Raj Kundra exited Rajasthan Royals after the Supreme Court found him guilty of betting on IPL matches in 2015.
Following his exit, he transferred his shareholding under a Share Transfer Agreement and later entered into a settlement with Emerging Media Ventures in 2019.
Under that agreement, Kundra accepted $4.94 million, relinquished all rights relating to the franchise shares and agreed not to pursue future ownership claims or initiate legal proceedings outside England.
The settlement also prohibited him from making public allegations concerning the share transfer.
Significant victory for EMV
The ruling represents a significant legal victory for Emerging Media Ventures following the successful completion of the Rajasthan Royals stake sale.
By upholding the validity of the settlement agreement and enforcing the exclusive jurisdiction clause, the English High Court has effectively brought clarity to the long-running ownership dispute surrounding Kundra’s former investment in the IPL franchise.
The judgment is expected to reinforce the legal finality of the Rajasthan Royals transaction, which ranks among the largest franchise deals in the league’s history.