New Delhi: The Board of Control for Cricket in India (BCCI) has reportedly exempted Chennai Super Kings (CSK) and Rajasthan Royals (RR) from paying the annual Indian Premier League (IPL) franchise fee during their suspension period, between 2016 and 2017.


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According to ESPNcricinfo, the Indian cricket board made the made the decision during its most recent working committee meeting in Delhi.


Beside the exemption of annual franchise fees, BCCI will also return first installment of the fee paid by the franchises., it reported.


The report further quoted a CSK official, claiming that both the suspended franchises have now withdrawn legal proceedings after the board opted to settle the matter out of court.


"There is no need to pay the franchise fee when we are suspended," the CSK official told ESPNcricinfo. "They will refund the franchise fee which we have paid so far [under protest]. We have already withdrawn the case from the Bombay High Court.


"When they asked for the full and final [instalment] of payment, we approached the court for a stay and then we invoked the arbitration clause. Arbitrators were also in favour [of Chennai Super Kings and Rajasthan Royals], so they [BCCI] went for an out of court settlement."


Both the franchises were suspended for two years in July 2015, following the corruption scandal in IPL 2013.