Ganguly quits ATK Mohun Bagan position to avoid conflict of interest

Sourav Ganguly has resigned as a director of ATK Mohun Bagan on Wednesday (October 27). Two days after RPSG Group, that owns the ISL team Bagan, won the Lucknow franchise of the Indian Premier League (BCCI), the Board of Control for Cricket in India (BCCI) president confirmed to Cricbuzz that he has relinquished the position in the Kolkata football team to avoid potential conflict of interest.

"I have resigned," Ganguly told this website on Wednesday night after reports emerged about his conflicted position by virtue of being the BCCI president as well as a director of company that owns an IPL franchise.

Allegations have been made that by having links with an IPL franchise, Ganguly's position as the BCCI president is untenable. Asked about the conflicted position, Sanjiv Goenka, the owner of the RPSG Group, told this website that Ganguly only can answer the question.

Ganguly's resignation should put a partial end to the raging controversy that surfaced since the sale two new IPL franchises - Lucknow and Ahmedabad - to RPSG Group and Global Private Equity firm CVC Capital respectively, on Monday.

On one hand questions were raised on the process of the sale of teams overseen by a person who was in a conflicted position and on the other hand posers have been made about Lucknow franchise owner's links with a betting company in UK, leading to avoidable embarrassment for the BCCI.

Lalit Modi questions process

At the forefront of those criticising the process was Lalit Modi. "I guess betting companies can buy an IPL team, must be a new rule. Apparently one qualified bidder also owns a big betting company. What next? Does BCCI not do its homework? What can Anti-Corruption do in such a case (sic)?," the League founder tweeted on Tuesday (October 26). CVC Capital bagged the Ahmedabad franchise, shelling out Rs 5625 crore.

Asked to elaborate on the point, he told Cricbuzz, "I am shocked that the BCCI did not do their homework and did not check that one of the bidders also owns a betting company. CVC Capital apparently owns 80 per cent of Sky Betting. How does anybody control anti-corruption in such cases? If the owners of a team are also the owners of a betting company, it defeats the purpose of not allowing the promoters of betting in India where betting is illegal. I am shocked that the BCCI let it happen. They should disqualify the owners and award the franchise to the second best bidder."

When pointed out they own sporting leagues in other countries, his reply was, "It is ok that they are participating in other leagues because they allow betting companies. There is a problem here because in India betting is not allowed. Already you have had a betting scandal (in 2013), that is the problem."

CVC reassured?

The BCCI and IPL bigwigs were not immediately available for a comment but one official has said that due diligence was done. "It has been brought to our notice. Due diligence was done. If there is a problem, we will look into it," the official said. Before the BCCI announced the two new teams in Dubai on Monday (October 25), its legal and audit teams spent six hours evaluating the technical bids of each participant.

Cricbuzz understands that the BCCI and CVC Capital had some conversations on Wednesday and the Indian side was reassuring to the global PE firm the turnover of which was over $ 120 billion dollars. "They have had a conversation and the tone from the BCCI apparently was reassuring. CVC feels confident that the franchise will stand," an industry source, in direct knowledge of the development, said. Messages to CVC Capital's UK Operations team have remained unanswered till the time of going to print.