Dinesh Karthik, the Tamil Nadu wicketkeeper, will move from Kings XI Punjab to the Mumbai Indians in the first notable transfer ahead of the IPL's fifth season. Karthik was bagged by the Mumbai Indians for an undisclosed sum. A BCCI insider said it was easily the highest sum paid to buy a player from another team in the history of the IPL. In exchange for Karthik, allrounder R Sathish will go to Kings XI.

"It was a substantial sum and easily the highest in strictly trading terms," the board official said. "Mumbai wanted a keeper. Punjab did not mind as they were getting a good amount of money."

Kings XI had spent $900,000 (Rs 4.77 crores) on Karthik during the Jaunary 2011 auction, making him the second-most expensive player in their squad, behind David Hussey and joint with captain Adam Gilchrist. Though the IPL and both franchises have been muted about the trade, it is understood that Mumbai have paid $2.35 million (Rs 12.4 crores* approximately) for Karthik. Unlike during the auction, when the franchises are restricted by a specific purse, there are no caps on spending during trading. According to IPL rules, 20% of the profit made in a trade - in this case $1.45 million - goes to the player with the rest going to the franchise selling him.

Sathish, who does not have an India cap, will be paid Rs 30 lakhs ($56,619) by Kings XI according to IPL rules.

Despite having a power-packed squad, Mumbai Indians have struggled to find a full-time wicketkeeper. Yogesh Takawale, Luke Ronchi and Aditya Tare were tried over the first three seasons. They bought South African Davy Jacobs during the 2011 auction, and he turned heads by standing up to the quicks. However, he picked up a hip injury during the Champions League T20 in September last year, forcing Mumbai Indians to throw the gloves to Ambati Rayudu, whose frailties as a keeper were exposed during the tournament.

When the trading window opened on December 15, 2011, Mumbai Indians immediately declared their interest in Karthik. Kings XI have Gilchrist as their first-choice wicketkeeper and Haryana's Nitin Saini in reserve, which would have made it easier for them to take the large amount offered for Karthik.

Karthik spent the first three IPL seasons at the Delhi Daredevils but they did not retain him for the next season. Kings XI grabbed him at the auction, doubling the $525,000 Delhi had bought him for in 2008. Karthik was the first-choice wicketkeeper for the Daredevils but had to play as a batsman for Kings XI. In thirteen matches for Kings XI, he scored 282 runs at 25.63. In his 46 matches for the Daredevils, in the IPL and CLT20, he got 803 runs at 25.90 and affected 37 dismissals.

In a release issued by the BCCI, the owners of Kings XI were quoted as saying, "Dinesh played an important role for Kings XI Punjab last season, but with our captain Adam Gilchrist donning the wicketkeeping gloves, we were unable to harness Dinesh's complete potential. Everybody at Kings XI Punjab wishes him the very best in his future endeavours."

The owner of Mumbai Indians, Nita Ambani, said: "We are very pleased to add a player of Dinesh Karthik's calibre and specific skills to the Mumbai Indians squad as this addition will further strengthen our side."

Sathish joined the Mumbai Indians for the third season of the IPL; he was granted amnesty by the BCCI after he quit the rebel Indian Cricket League. He played 28 matches for the Mumbai Indians in the IPL and CLT20, scored 223 runs at 15.92 and took two wickets. He also impressed with his athletic fielding.

The first window for trading between IPL franchises closes on January 20. There will be another short window for trading after the February 4 auction in which the players of now terminated franchise Kochi Tuskers Kerala will be sold.

04:26 GMT, Jan 7: This story had said Rs 1.24 crores. This has been corrected