G Vivekanand rejects allegations over Visaka Industries arbitration award

Telangana Minister G Vivekanand dismissed allegations of fund misappropriation involving Visaka Industries, stating that the arbitration award was upheld by courts and no money had yet been credited to the company as legal proceedings remain pending

Hyderabad: Telangana Minister and former president of the Hyderabad Cricket Association G Vivekanand termed the allegations of misappropriation of funds with regard to Visaka Industries as totally baseless.

Speaking to the media on Saturday, Mr Vivekanand said that some vested interests were indulging in false propaganda regarding the arbitration award to Visaka Industries by the arbitration panel after the group sponsored the construction of the Rajiv Gandhi Stadium.

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“In 2016, the Arbitration Tribunal awarded Rs 25.92 crore to be settled by the HCA immediately. The HCA went to court challenging it. As per the tribunal, interest at 18 per cent per annum was also to be charged and, after nine years, the total amount has come to Rs 68.73 crore. This is the order of the court as per the terms and conditions of the agreement,” the Minister explained.

“The arbitration award was upheld by the High Court of Telangana and later by the Supreme Court when the HCA appealed,” the Minister clarified.

“And importantly, not a single rupee has been credited to the account of Visaka Industries even after the arbitration award was given, as a case is still pending in a court of law,” Mr Vivekanand said.

“It is unfortunate that for a group which had come forward to support the cause of a cricket stadium for the HCA when no other sponsor was willing to come forward, my father, late G Venkataswamy, when approached by the then HCA Secretary N Shivlal Yadav and other HCA officials, agreed to sponsor it as he also dreamt of an exclusive cricket stadium in the city,” Vivekanand said.

“In 2004, we were to sponsor about Rs 6 crore for the stadium construction, with it being named Visakha International Cricket Stadium, and reached an agreement. But the then Chief Minister Dr Y S Rajasekhar Reddy said that they wanted the stadium to be named after former Prime Minister Rajiv Gandhi and that we reduce the sponsorship amount accordingly. Then, we agreed to sponsor about Rs 4 crore,” the former HCA chief said.

“Unfortunately, in 2011, HCA cancelled the agreement and we went to court challenging it. In 2016, the Tribunal gave a judgment in favour of Visaka Industries,” he recalled.

“Sadly, no one speaks about the fact that Visaka was denied advertising rights for 15 years after the IPL started. On the contrary, all sorts of allegations were made against us,” he said.

“In fact, we have served defamation notices against those making irresponsible allegations,” the Minister said.