The landmark season of the Pakistan Super League’s (PSL) 11 is set to kick off on 26 March. As the PSL gears up for its historic season, Lahore Qalandars is dealing with a double blow.
While the league’s move to a firt-ever player auction threatens to strip the team its biggest stars, a high-stakes legal battle has thrown the front office into chaos.
A recent arbitation ruling has rocked the foundations of Kausar Rana Resources (Pvt) Limited (KRR), the parent company of the Qalandars. The decision has reignited a bitter ownership dispute the between the original owner, Fawad Rana and his younger brother, Atif and Sameen Rana, who currently managed the team.
What will the decision mean for Lahore Qalandars, and how will it impact the current management of the team?
Tribunal Decision
The tribunal ruling given by retired Justice Maqbool Baqar noted that the transfer of the majority shares from Qatar Lubricants Company (Qalco) to Atif Naeem Rana and Sameen Naeem Rana was invalid and carried out without authorisation.
The tribunal directed the respondents to either pay Qalco Rs2.96 billion along with markup or promptly reinstate Qalco’s 51 per cent majority stake in the company.
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The judgement also pointed out several critical failures in the respondents’ case, noting that Fawad Rana provided travel history and passport copies, showing that he was not in Pakistan when the disuputed transfer document were supposedly signed.
Major Relevations
The tribunal observed that the younger brother failder to produce the orgional transfer deeds and did not call key witnesses who were available in Lahore.
Moreover, the respondents admitted that no payment was ever made for the shares, despite what the supposed offer letters required.
A major revelation was that younger brothers had secretly sold 30% of KRR shares to an individual named Mr. Niazi for $5 million, which was concealed from Qalco and the tribunal until cross-examination.
Background
The case baseline involved two disputed share transfers in 2018 and 2020, with the youngers brothers claiming that they did this to avoid problems caused by tensions between the UAE and Qatar during the Abu Dhabi T10 cricket league.
In 2018, the relations between Qatar and the United Arab Emirates (UAE) were on historic low due to major diplomatic and economic crisis.
Due to the tensions, the youngers Rana brothers claimed that since the UAE had cut ties with Qatar, a company mostly owned by Qalco could not take part in activities in the UAE. So Fawad Rana decided to transfer 4% of its shares to Atif Rana to make him the majority holder.
But, the Qalco and Fawad Rana alleged that these transfers were false, fabricated and fradulent.
Sameen Rana and Atif Rana also said that some money paid to KKR was spent on hunting trip for Shaikh Sultan, Chairman and CEO of Qalco.
Order
The tribunal ordered younger Rana brothers to pay Qalco Rs2.296bn with markup dating back to June 2020, or return the 51pc shareholding within 45 days.
The judgement said the respondents must provide a full and true account of all profits earned by KRR and the proceeds from the $5 million ‘Niazi deal’ to the company judge of the Lahore High Court.
How will decision affect Lahore Qalandars
Qalco originally secured the Lahore Qalandars rights from the Pakistan Cricket Board (PCB) in 2015 whic were later transferred to KRR, where Qalco hedl 51pc shares at incorporation.
Although, the ruling does not affect Lahore Qalandars participation in PSL 11 but it could affect the ownership and control of the franchise, with any management changes would follow after ownership is legally setlled.