Mumbai: The high-profile acquisition of Rajasthan Royals for an estimated Rs 15,600 crore may face legal hurdles, according to recent reports, casting uncertainty over one of the biggest deals in Indian Premier League (IPL) history.
The franchise was recently acquired by a consortium led by industrialist Lakshmi N. Mittal, his son Aditya Mittal, and vaccine billionaire Adar Poonawalla. The group secured a majority stake after the Kal Somani-led consortium reportedly withdrew from the bidding process.
Legal challenge likely from rival consortium
However, the deal could soon be contested. As per reports, the Kal Somani-led group is preparing for legal action, alleging irregularities in the transaction process.
Sources close to the consortium have indicated that a legal notice is being drafted and may be sent to the Board of Control for Cricket in India (BCCI). The group is also said to be evaluating whether to make the dispute public, signalling the possibility of a prolonged legal battle.
The consortium has reportedly raised concerns over procedural transparency, including queries related to pending dues, legal clearances, and the overall timeline of the deal. It has alleged that there were delays followed by “side dealings”, although these claims have not been independently verified.
Details of the ownership structure
According to an official statement issued by the Mittal family, the acquisition has already been finalised through a definitive agreement with the existing ownership group led by Manoj Badale.
Under the new structure, the Mittal family will hold approximately 75 per cent stake in Rajasthan Royals, while Adar Poonawalla will own around 18 per cent. The remaining 7 per cent stake will continue to be held by existing investors, including Badale.
The restructured board is expected to include Lakshmi N. Mittal, Aditya Mittal, Vanisha Mittal-Bhatia, Adar Poonawalla, and Manoj Badale, ensuring continuity in leadership alongside new ownership.
Legacy and expansion plans
The Rajasthan Royals franchise, one of the founding teams of the IPL, has built a strong reputation for nurturing young talent and maintaining a global presence. Apart from its IPL team, the franchise also owns the Paarl Royals in South Africa and the Barbados Royals in the Caribbean, expanding its footprint across international leagues.
Lakshmi N. Mittal expressed a personal connection to the franchise, citing his roots in Rajasthan and his passion for cricket. Aditya Mittal emphasised the team’s legacy of developing talent and outlined plans to build on that foundation.
Adar Poonawalla, who had previously shown interest in investing in other IPL teams, described the Royals as a “premier franchise” and expressed optimism about its future growth.
Uncertainty over deal closure
Despite the positive outlook from the new owners, the potential legal challenge introduces uncertainty around the completion and smooth transition of ownership.
If the Somani-led consortium proceeds with litigation, the matter could delay formal approvals and complicate the transfer process. The BCCI’s role will be crucial in reviewing any complaints and ensuring compliance with league regulations.
What lies ahead
The situation remains fluid, with no official confirmation yet from the BCCI regarding any dispute. However, the development highlights the increasing financial stakes and competitive intensity surrounding IPL franchises.
As valuations of teams continue to rise, transactions of this scale are likely to attract greater scrutiny from both regulators and competing investors.
Conclusion
While the Rajasthan Royals deal marks a significant milestone in the commercial evolution of the IPL, the emerging legal concerns could test the robustness of governance frameworks within the league. The coming weeks will be crucial in determining whether the acquisition proceeds smoothly or becomes entangled in a prolonged legal dispute.