The Indian Premier League (IPL) team, Rajasthan Royals, seem to be on a bumpy road because the Finance ministry's FDI approval arm FIPB has rejected the team's proposal to infuse foreign capital worth $ 5.8 million.
The board says the proposal is rejected because the source of funds is unclear. The franchisee rights of Rajasthan Royals was awarded to Emerging Media (IPL) Ltd (EMIPL), UK by the Board of Cricket Control in India (BCCI) in December 2007 after an auction.
The FIPB says that the deal structure is multilayered and confusing while foreign investors in the team seem to be treaty shopping with the money routed through Mauritius and the Bahamas.
London-based entrepreneur Raj Kundra and his partner, Bollywood actor Shilpa Shetty, had bought 12 per cent in the IPL team in 2009.
The IPL team, after having won the first IPL series held in 2008, lost out in the first few matches in the 2009 series. Now with this new googly from FIPB, the team could be bowled out of the financial game.