England Court Orders Raj Kundra to Repay $4.94 Million in Rajasthan Royals Share Dispute

The High Court of England and Wales has ordered businessman Raj Kundra to repay $4.94 million to Emerging Media Ventures (EMV) and permanently restrained him from pursuing legal proceedings in India over his former shareholding in IPL franchise Rajasthan Royals.

The ruling marks a significant legal victory for EMV and comes months after the company's shareholders completed the sale of a controlling stake in Rajasthan Royals to a consortium led by billionaire Lakshmi Mittal and his family, in partnership with Serum Institute of India CEO Adar Poonawalla.

Court Upholds 2019 Settlement

The dispute centres on Kundra's former 11.7% stake in Rajasthan Royals. Kundra had alleged that he was compelled to sell his shares at a value significantly below the franchise's true worth.

According to EMV, Kundra accepted $4.94 million under a 2019 settlement agreement, relinquished all rights to the shares and agreed that any future disputes relating to the matter would fall exclusively under the jurisdiction of the English courts.

Challenge to Royals Deal

As EMV proceeded with the sale of a controlling stake in Rajasthan Royals earlier this year, Kundra initiated proceedings before the National Company Law Tribunal (NCLT) and the Bombay High Court. He also publicly alleged fraud and concealment against EMV and its co-founder Manoj Badale, threatened to approach the BCCI and other authorities, and sought to halt the transaction.

The controlling stake was subsequently sold to a consortium led by Lakshmi Mittal and Adar Poonawalla in a deal reportedly valued at $1.65 billion, making it one of the biggest transactions in IPL history.

Court Rejects Fraud Allegations

Justice Griffiths ruled that Kundra had "no realistic prospect" of successfully defending EMV's claim and found "no evidential basis" for his allegations that either the 2015 Share Transfer Agreement or the 2019 Settlement Agreement had been obtained through fraud or unconscionable conduct.

The court observed that Kundra had voluntarily entered into both agreements while represented by legal counsel.

Permanent Injunction Granted

The court also made permanent an anti-suit injunction first granted in January, restraining Kundra and Kuki Investments from pursuing proceedings in India relating to the dispute in breach of the settlement agreement's exclusive English jurisdiction clause.

In addition, the court directed Kundra and Kuki Investments, jointly and severally, to repay $4.94 million, along with interest, after concluding that EMV had validly terminated the settlement agreement due to repeated breaches.

Background

Kundra exited Rajasthan Royals after the Supreme Court, in 2015, found him guilty of betting on IPL matches. He subsequently transferred his shareholding before entering into the 2019 settlement, which barred him from asserting further ownership claims, initiating proceedings outside England or making public allegations concerning the share transfer.