Did India Cements take steps to hive off Chennai Super Kings in anticipation of an adverse verdict from the Supreme Court on the conflict of interest issue?

The move to distance CSK from the company seems to have been initiated as early as June 2013, when India Cements’ Managing Director N Srinivasan was asked to step down as BCCI president by the apex court.

On September 26, the company’s directors formally approved the proposal to spin off CSK into a wholly-owned subsidiary – CSK Cricket Ltd – by transferring its net assets at cost. The effective date of transfer was fixed on January 1, 2015, subject to regulatory approvals.

Company sources maintain that this decision was taken in order to focus on its core business of cement manufacturing. They also claimed that the move would help CSK leverage its potential to grow by bringing in other sports under the banner.

But the spin-off makes it easier for Srinivasan to transfer CSK into other hands, and thereby get around the conflict of interest issue. It remains to be seen whether this can be done before the BCCI election, which must be held within six weeks from now.

Must resign: Muthiah In his reaction, the past president of BCCI, AC Muthiah, said the judgment is very fair and “my trust in the judiciary system has gone up”. He said he was the first one to move the court on this issue saying continuation of Srinivasan as BCCI President would cause conflict of interest. He demanded that Srinivasan resign from the post of President of BCCI without any pre-conditions in order to maintain probity in public life.

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