Tamil Nadu cricket chief Rupa Gurunath ruled to be in conflict of interest

BCCI ethics officer says the TNCA president's links to Chennai Super Kings can't be ignored

BCCI’s troubles with conflict of interest has shown up again as the Ethics Officer of the Indian cricket board, Justice DK Jain, has ruled that “a case of conflict of interest is made out” against Rupa Gurunath, president of Tamil Nadu Cricket Association.

Rupa Gurunath (TNCA Cricket / Twitter)

Gurunath is the daughter of former BCCI president N Srinivasan, who had been himself been embroiled in conflict of interest for his role as the owner of IPL team Chennai Super Kings (CSK). Months before the two-year suspension of CSK in 2015, the franchise was transferred to the newly formed CSK Cricket Ltd (CSKCL), a separate company.

“A circuitous web of entities, including CSKCL has been created under the umbrella of ICL (India Cements Ltd). The management and governance of all of such entities directly or indirectly, lies in the hands of Board of ICL. In the given factual scenario, it can be safely inferred that the Respondent (Rupa), in her capacity as the Whole Time Director and Promoter of ICL has close association with the Trustees of IC Shareholders Trust and the Directors of CSKCL, both of which indirectly or directly have interest in CSKCL, which has a Franchise Agreement with the BCCI,” the order said.

“This is one of the recognised forms of conflict of interest, as identified in Rule 38(1)(i) of the Rules. Thus, her interest in CSKCL tends to give rise to an apprehension that the Respondent, associated with the BCCI in her capacity as the President of TNCA, by virtue of her position and stake in ICL, has the potentiality of giving rise to the apprehensions envisioned in Rule l(A)(g) of the Rules.”

Rupa in her response had argued that ICL’s association with CSKCL is “too remote” to establish that her participation, performance and discharge of administrative functions as TNCA president would be compromised.

However, in response to the complaint filed by Mr. Sanjeev Gupta six-months back, Justice Jain has ruled that Rupa “undoubtedly has at least indirect (if not direct) interest in CSKCL”. The Annual Report of CSKCL for the financial year 2019-20 shows IC Shareholders Trust, whose trustees are the independent directors of ICL, holding the largest ownership stake of 30.08% in CSKCL and Gurunath holding 0.01% stake. ICL are also one of the sponsors of CSK. The Ethics Officer has directed the BCCI to take requisite steps and ensure due compliance of rules.

Gurunath became the president of TNCA in September 2019. Sources close to her said they are confident that they can ensure due compliance without her having to relinquish her post. “The Ethics officer has directed the BCCI to comply by Rule 38 (2) which is to do with disclosure. Once you disclose completely what is the potential for conflict, the board can decide whether the conflict is tractable or intractable,” said the source. “The order is not asking her to step down or even indirectly having benefitted in any way.”