Indian Premier League franchise Pune Warriors have had their contract terminated by the Board of Control for Cricket in India (BCCI).
The BCCI says that the franchise is more than six months late with a bank guarantee.
"In August 2013 and pending arbitration, Sahara moved the Hon’ble Bombay High Court seeking an injunction on BCCI’s right to terminate the franchise agreement as a result of Sahara’s default in not delivering the bank guarantee," a BCCI statement read.
"In its order of 5 September 2013, the High Court concluded that only if Sahara gave the Bank Guarantee as required by the Franchise Agreement could BCCI not terminate the agreement.
"Over the last six months, the BCCI’s advisors have written to Sahara on five separate occasions (in April, May, June, August and October) requesting that the bank guarantee be put in place, with the final letter being sent on 8 October 2013. In response, Sahara again refused to put in place the guarantee as per the franchise agreement.
"In order to proceed with the preparations for the 2014 season, it is important that BCCI now has certainty as to whether the Pune franchise will comply with the terms of its franchise agreement.
"Given Sahara’s continued position that it would not deliver the bank guarantee, the Working Committee unanimously determined to terminate the Sahara franchise agreement, while taking whatever action was necessary to protect the BCCI position."
Pune joined the league in 2011 along with the now-defunct Kochi Tuskers Kerala, and achieved finishes of ninth in 2011 and 2012 and eighth in 2013.
Financial problems led to them being withdrawn from the league in 2012 before they were reinstated.
© Cricket World 2013