Court order in Rajasthan Royals dispute, Raj Kundra will have to pay Rs 50 crore

The High Court of England and Wales has ordered businessman Raj Kundra to repay $4.94 million (about Rs 50 crore) to Emerging Media Ventures (EMV). Along with this, the court has forever barred him from taking legal action in India regarding his old stake in IPL franchise Rajasthan Royals. This is a major legal victory for the investment firm.

The decision comes months after EMV and its shareholders sold their controlling stake (majority stake) in Rajasthan Royals to a group led by billionaire Lakshmi Mittal and his family. Serum Institute of India CEO Adar Poonawala was also a partner in this sale. According to reports, this deal worth $1.65 billion is one of the biggest deals in the history of the Indian Premier League.

This decision has been taken after a long-running dispute regarding Kundra’s old 11.7 percent stake in the franchise. Kundra had alleged that he was forced to sell his stake at a price much lower than the actual value of the team.

Earlier this year, when the process of sale of controlling stake moved forward, Kundra filed petitions in the National Company Law Tribunal (NCLT) and the Bombay High Court. He publicly accused EMV and its co-founder Manoj Badale of fraud and concealment, threatened to approach the BCCI and other officials, and tried to stop or disrupt the deal.

EMV argued that Kundra’s actions were a violation of the 2019 settlement agreement. Under this agreement, he accepted US$4.94 million, gave up all his rights on the shares of Rajasthan Royals and agreed that the English courts would have exclusive jurisdiction over any future disputes related to this matter.

In 2015, Kundra was out of Rajasthan Royals after the Supreme Court found him guilty of betting in IPL matches. Following the verdict, he transferred his stake under a ‘Share Transfer Agreement’ before signing the 2019 settlement agreement. The agreement prevented them from making any further claims of ownership, commencing legal action outside England or making public allegations about share transfers.

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