Zee threatens legal action against the BCCI

Zee Telefilms has served a legal notice to the Indian board, demanding Rs16,300 million (US$364 million) for cancelling the telecast rights after offering it to Zee in September 2004.

In a letter explaining the reasons for the move, Himanshu Mody, the executive vice president of Zee Telefilms, said: "It has been found by the High Court that Zee has been wronged and not only deprived of its legitimate business opportunity, [but also] serious losses have been caused to us. We therefore give notice of our intent to claim damages from the BCCI and [Jagmohan] Dalmiya jointly and severally for the losses already caused to us."

According to Press Trust of India, the letter also said that the figure was calculated after careful analysis. "We have engaged a leading international accounting firm to prepare a detailed report calculating the damages caused to us. Our preliminary estimate of such damages is Rs 1,630 crore."

The telecast rights for all international cricket in India has been a much-sought-after deal - the board had initially granted the rights to Zee, but then had cancelled them after ESPN-Star contested the decision. Zee went to the Madras High Court, contesting the BCCI's decision. In it's verdict, the court termed the cancellation "improper and vitiated by arbitrariness and unfair action", and suggested that Zee could take legal action against the board in a civil court.

Ashish Kaul, the vice president, corporate brand development for Zee, told PTI that they still wanted an out-of-court settlement to the dispute: "We are offering to BCCI even now to find an amicable solution to the crisis. We had made similar offers earlier, but the board has rejected them all. This is our last effort. If they do not respond in a week then we will move court."

Reacting to Zee's move, Kamal Morarka, the BCCI vice president, told The Telegraph: "We have already challenged the decision awarded by Madras High Court and will deal with this letter as necessary."