Virat Kohli's RCB face uncertain future after Vijay Mallya's loan against IPL team comes to light
Mallya is no longer in control for RCB and Force India.
New Delhi: After Vijay Mallya fled to London, questions have now been raised with regards to the future of his Indian Premier League (IPL) franchise Royal Challengers Bangalore (RCB).
According to a report in the Hindustan Times, document suggests that flamboyant businessman took a huge loan against RCB franchise as well.
The liquor baron acquired the Bangalore team in 2008 for a whooping Rs 476 crore.
However RCB has continued to post losses ever since.
As per a resolution passed by Royal Challenge Sports Pvt Ltd (RCSPL) at the September 2014 AGM, board of directors were directed not to borrow money over Rs 500 cr from any bank or financial company.
“ …notwithstanding that the money so borrowed together with the money already borrowed by the company (apart from temporary loan obtained from the banker in the ordinary course of business) will exceed the aggregate of the paid up capital of the company…,” the resolution said.
“There was some borrowing by RCSPL but I don’t have details,” a former RCSPL official told HT on Thursday.
The 60-year-old stepped down as United Spirit's chairman and non-executive director of United Spirits Ltd (USL) as well as director of RCSPL on February 25.
“I will now be the chief mentor of the Royal Challengers Bangalore. I have been passionate about this team since inception and am determined to do whatever I can to win the IPL trophy. I am glad that my son, Sidhartha, will remain as a director as he is equally passionate about RCB,” read his statement.
Mallya is no longer in control for RCB and Force India. The sponsorship agreement with I-League champions Mohun Bagan too has ended.