High Court Orders Raj Kundra to Repay $4.94 Million to EMV

The High Court of England and Wales has ruled against businessman Raj Kundra in a dispute over his former shareholding in the Indian Premier League (IPL) franchise Rajasthan Royals. The court directed Kundra to repay 4.94 million US dollars to Emerging Media Ventures (EMV) and permanently restrained him from pursuing related legal proceedings in India, delivering a significant legal victory to the investment firm following the sale of a controlling stake in the franchise.

The judgment comes months 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 Chief Executive Officer Adar Poonawalla. The transaction, reportedly valued at 1.65 billion US dollars, is among the largest franchise deals in IPL history and revived Kundra's long-running dispute over his former ownership stake.

Kundra had claimed that he was forced to relinquish his 11.7 per cent stake in the franchise for significantly less than its actual value. During the sale process, he initiated proceedings before the National Company Law Tribunal (NCLT) and the Bombay High Court, alleging fraud and concealment by EMV and its co-founder Manoj Badale. He also sought to challenge the transaction through complaints to the Board of Control for Cricket in India (BCCI) and other authorities.

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EMV argued that Kundra's actions violated a 2019 settlement agreement under which he accepted a payment of 4.94 million US dollars, relinquished all rights to the Rajasthan Royals shares and agreed that any future disputes would be resolved exclusively before the English courts. The company also stated that Kundra had previously transferred his shareholding under a 2015 Share Transfer Agreement after the Supreme Court found him guilty of betting on IPL matches.

Justice Griffiths held that Kundra had "no realistic prospect" of successfully defending EMV's claim and found no evidence to support allegations that either the 2015 Share Transfer Agreement or the 2019 Settlement Agreement had been obtained through fraud or unconscionable conduct. The court observed that Kundra had entered into both agreements voluntarily while being represented by legal counsel.

The court made permanent an anti-suit injunction first granted in January, preventing Kundra and Kuki Investments from pursuing related proceedings in India in breach of the settlement's exclusive English jurisdiction clause. It also ordered Kundra and Kuki Investments, jointly and severally, to repay the 4.94 million US dollars received under the settlement, along with applicable interest, after concluding that EMV had lawfully terminated the agreement due to repeated breaches.

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