England court orders Raj Kundra to repay $4.94 mn

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, handing a major legal victory to the investment firm.

The ruling comes months after EMV and its 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.

The transaction, reportedly valued at $1.65 billion, ranks among the largest deals in the history of the Indian Premier League.

The latest judgment stems from a long-running dispute over Kundra's former 11.7 per cent stake in the franchise. Kundra had alleged that he was compelled to sell his stake at a value far below the team's actual worth.

As the sale of the controlling stake progressed earlier this year, Kundra initiated proceedings before the National Company Law Tribunal (NCLT) and the Bombay High Court, publicly accused EMV and its co-founder Manoj Badale of fraud and concealment, threatened to approach the BCCI and other authorities, and sought to block or disrupt the transaction.

EMV argued that Kundra's actions violated a 2019 settlement agreement under which he accepted $4.94 million, relinquished all rights to the Rajasthan Royals shares and agreed that any future disputes relating to the matter would be subject exclusively to the jurisdiction of the English courts.

Kundra had exited Rajasthan Royals after the Supreme Court found him guilty of betting on IPL matches in 2015.

Following the verdict, he transferred his shareholding under a Share Transfer Agreement before signing the 2019 settlement, which barred him from making any further ownership claims, initiating proceedings outside England or making public allegations regarding the share transfer.

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 procured through fraud or unconscionable conduct.

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

The judgment also made permanent an anti-suit injunction that had initially been granted in January, restraining Kundra and Kuki Investments from pursuing the company petition in Mumbai or initiating related legal proceedings in India in violation of the settlement's exclusive English jurisdiction clause.

The court further directed Kundra and Kuki Investments, jointly and severally, to repay the $4.94 million settlement amount along with interest after concluding that EMV had validly terminated the settlement agreement because of repeated breaches.