IPL 2022: CVC Capitals link with betting companies gives away to controversy; BCCI allays concern

The controversy arose because betting and gambling are banned in India as per the country’s law. It may be noted that none of the betting companies that the CVC Capitals have investment do not have operations on Indian shores.

The Adani Group was seen as favourites to win the Ahmedabad-based team and had submitted a bid for Rs 5100 crore in the process held at Dubai on Monday.

The RP-Sanjiv Goenka Group bagged the Lucknow-based team for a whopping Rs 7090 crore.

The CVC Capital Partners made the bid through Irelia Company Pte Ltd and they have a turnover of over Rs 83000 crore and interests firms like BetWay and BetFair which base their operations in United Kingdom where the operations of such companies have been legalised.

However, the critics say that the BCCI ignored the links CVS Capitals Partners have with these firms even in the technical scrutiny round prior to the opening of the financial bids.

But the BCCI downplayed such controversies and said managing funds of such firms are not in violation of any rules, and as far as it has emerged the CVC Capitals does not have a managerial role in any of those companies. They argued that the CVC in its capacity as a leading private equity firm can pick up stakes in betting companies whose operations are under legal purview abroad.

The second highest-bidder Adani Group is closely watching unfolding action and till now has not made any official complaint. The BCCI is also in touch with CVC Capitals to underline their role in the betting firms abroad and at this stage there is no reason to worry about the legality of the bid.

It may be recalled that the CVC Capitals had bought a minor 10 percent stake in La Liga but had to reverse the investment after heavy objection from marquee Spanish clubs like Real Madrid, Barcelona and Atletico Madrid.