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NEW
DELHI: Emerging Media-owned Rajathan Royals and Bajaj Allianz,
the title sponsor for the franchaisee last year, have finally
settled amicably.
Both
the parties have signed the peace treaty by terminating the memorandum of understanding
(MOU) wherein Rajasthan Royals has decided to withdraw its legal proceedings against
Bajaj Allianz in Delhi and Mumbai courts. Says
Rajasthan Royals CEO Manoj Badale, “We have decided to withdraw the legal
proceedings and resolve the issues out of court. In hindsight, after parting ways,
we feel that the relationship could have been taken to a mutually beneficial level.” Rajasthan
Royals had dragged Bajaj Allianz to court for permanent injunction, recovery of
dues and damages in regards to the MOU signed between the two parties on 31 March,
2008. The
IPL champion was then looking at recovering at least Rs 52.5 million from the
company as dues. In its petition, Rajasthan Royals said “out of the payment
due, the defendants has paid Rs 37.5 million, while Rs 52.5 million is due and
payable to since 8 June 2008.” As
per the petition, the sponsorship deal was cancelled on 1 December.
Emerging Media, meanwhile, had signed Bajaj Allianz's arc rival Tata-AIG as its
title sponsor for the forthcoming year's Champions League. This had become a bone
of contention between the two parties. Later,
when the Champions League got called off due to the Mumbai terror attacks, Bajaj
Allianz continued advertising as the team’s IPL partner, which led to the
cancellation of the MOU. “We
had frank and fair discussions on all the issues and have mutually agreed to terminate
the present MOU,” adds Bajaj Allianz Life Insurance country head Kamesh Goyal.
Presently
Rajasthan Royals is in the process of informing all stakeholders, IPL and India
Broadcasting Federation (IBF) about the termination of the relationship. | 
