The High Court of England and Wales has ordered businessman Raj Kundra to repay $4.94 million to Emerging Media Ventures (EMV) and permanently barred him from pursuing proceedings in India over his former Rajasthan Royals shareholding. According to reports from NDTV Profit, the ruling comes after EMV and its shareholders completed the sale of a controlling stake in Rajasthan Royals to a consortium led by billionaire Lakshmi Mittal and his family, in partnership with Serum Institute of India CEO Adar Poonawalla. The deal was completed at a $1.65 billion valuation, making it one of the largest transactions in IPL history.
The latest developments show that Lakshmi Mittal's acquisition of Rajasthan Royals has triggered a London lawsuit, with minority shareholders alleging they are being forced to sell shares worth about $50 million for just £1 ($1.33). As reported by Business Standard, two minority shareholders in the company that owns the team have sued Emerging Media Ventures, alleging the company wrongly accused them of 'serious misconduct' and denied them their cut from the proceeds of the franchise sale. Emerging Media Ventures has not yet filed its defense to the lawsuit, with the company's lawyers not responding to requests for comment.
The ruling addresses Kundra's long-running dispute over his former 11.7% stake in the IPL franchise, with the businessman alleging he was forced to exit at a fraction of the franchise's true value. As reported by NDTV Profit, Kundra exited Rajasthan Royals after the Supreme Court found him guilty of betting on IPL matches in 2015. He transferred his shareholding under a Share Transfer Agreement before entering into the 2019 settlement, which prohibited him from asserting further ownership claims and commencing proceedings outside England. According to EMV, Kundra accepted $4.94 million under the 2019 settlement agreement, relinquished all rights to the shares and agreed that any future disputes relating to the matter would fall exclusively under the jurisdiction of the English courts.
Justice Griffiths held that Kundra had 'no realistic prospect' of defending EMV's claim and found 'no evidential basis' for allegations that either the 2015 Share Transfer Agreement or the 2019 Settlement Agreement had been procured through fraud or unconscionable conduct. According to NDTV Profit, the judge ruled that Kundra had entered both agreements voluntarily while represented by solicitors. The court found that EMV had validly terminated the agreement following repeated breaches by Kundra, who launched proceedings before the NCLT and Bombay High Court and publicly accused EMV and co-founder Manoj Badale of fraud and concealment. As reported by EMV, Kundra had also threatened to approach the BCCI and other authorities, and sought to halt the transaction.
The judgment makes permanent an anti-suit injunction first granted in January, restraining Kundra and Kuki Investments from pursuing the Mumbai company petition or commencing related proceedings in India in breach of the settlement's exclusive English jurisdiction clause. As reported by NDTV Profit, the court ordered Kundra and Kuki Investments, jointly and severally, to repay the $4.94 million settlement amount with interest. The ruling establishes a significant legal precedent for international sports franchise disputes, particularly in the IPL market where such large-scale transactions are becoming increasingly common.
