Lakshmi Mittal’s Rajasthan Royals takeover hits legal hurdle as minority shareholders challenge $1.65 billion deal

The proposed takeover of Indian Premier League (IPL) franchise Rajasthan Royals has landed in a legal dispute in the United Kingdom, after minority shareholders accused the company’s majority owners of attempting to force them out of a multi-billion-dollar deal.

The lawsuit, filed before a London court, relates to the sale of the franchise to a consortium led by billionaire industrialist Lakshmi Mittal and vaccine entrepreneur Adar Poonawalla, a transaction reportedly valued at around $1.65 billion.

Minority shareholders challenge share transfer

According to court filings, Bajan Boys Gully Cricket LLC and Halla Bol LLC, minority shareholders in Emerging Media Ventures Ltd., claim they are being compelled to transfer shares allegedly worth nearly $50 million for a nominal payment of just £1 (approximately $1.33).

The two firms argue they are entitled to receive approximately:

• $22 million (Bajan Boys Gully Cricket LLC)
• $28 million (Halla Bol LLC)

from the proceeds of the Rajasthan Royals sale.

They have asked the London court to prevent Emerging Media Ventures Ltd. from enforcing the transfer of their shareholding until the dispute is resolved.

Allegations of misconduct disputed

The conflict reportedly began after Emerging Media Ventures Ltd., which indirectly controls a majority stake in the Rajasthan Royals franchise, accused the minority shareholders of “serious misconduct.”

According to the lawsuit, letters sent in May alleged that Manish Patel, one of the beneficial owners of the two shareholder entities, had invested in a team participating in the National Cricket League (NCL) in the United States.

The minority shareholders have strongly denied the allegations, arguing that no contractual obligations were violated.

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Their legal representatives contend that participation in short-format cricket competitions outside territories where Rajasthan Royals operate does not constitute a breach of any shareholder agreement.

As of now, Emerging Media Ventures Ltd. has not filed its defence in court, and the company’s legal representatives have not publicly commented on the matter.

A franchise that transformed with the IPL boom

Founded in 2008, Rajasthan Royals made history by winning the inaugural season of the Indian Premier League, establishing themselves as one of cricket’s most recognised franchises.

Over the years, the IPL has evolved into one of the world’s most valuable sporting leagues, attracting investments from leading industrialists, celebrities and global corporations.

The proposed acquisition by Lakshmi Mittal, who was born in Rajasthan, and Adar Poonawalla is part of a broader trend of soaring franchise valuations.

Earlier this year, another major IPL transaction saw Kumar Mangalam Birla’s business group acquire defending champions Royal Challengers Bengaluru at an estimated valuation of $1.8 billion.

Mittal’s growing sporting footprint

Lakshmi Mittal, Executive Chairman of ArcelorMittal, ranks among the world’s wealthiest business leaders with an estimated fortune of nearly $40 billion, according to the Bloomberg Billionaires Index.

His planned investment in Rajasthan Royals would further strengthen the presence of Indian industrialists in global sports ownership.

However, with legal proceedings now underway in London, the completion of the blockbuster franchise sale could face delays depending on the outcome of the shareholder dispute.