East Bengal has imposed a transfer ban by the AIFF for non-payment of salaries to three Indian players …
The All India Football Federation (AIFF) imposed a transfer ban on East Bengal on 6 August 2021 for the payment of salaries to three Indian players namely Rakshit Dagar, Abhas Thapa and Pintu Mahata.
The combined amount owed to the three players is close to INR 12 lakhs, and Mahata’s salary takes up the bulk (INR 9 lakhs). It should be noted that Mahata’s case is still pending with the AIFF. If the payment issue is not resolved and a ban is followed, East Bengal will not be able to appeal or lift it as it does not comply with a court decision.
How can East Bengal remove the transfer ban?
From 6 August 2021, in the next 45 working days, the club must pay the full amount to remove the ban. Only then can the ban be lifted and East Bengal can register new players for the upcoming 2021/22 season.
Who will clear the fees of the players to increase the ban?
The three above players were registered during the Quess East Bengal era. All three players have been signed on two-year contracts, but since last season, after Quess Corp. left, they have not been included in the squad and their salaries for the second year of the contract have not been paid.
According to the futures statement signed between East Bengal and their investors Shree Cement on September 1, 2020, the company is not liable to pay off any debt incurred prior to the signing of the futures statement. Thus, East Bengal is legally obliged to erase the pending salaries.
But if the club signs the final agreement, Shree Cement is willing to pay off the debts to revoke the ban, but on the condition that the club repay them the amount within 30 days on which interest will accrue.
If the club does not repay the investors, the company will realize the amount from the club’s membership fees. Consequently, they asked the club to hand over the list of members of the club.
Initially, Shree Cement planned to realize the amount by liquidating East Bengal’s stake in the joint venture, which is 24 percent, but at the request of officials, the investor agreed to no more than four percent of the club’s stake to liquidate.
What’s the latest between East Bengal and Shree Cement?
After Quess Corp separated from East Bengal in June 2020 after being the club’s investor for two seasons, Shree Cement adopted their new investor, facilitating the club’s move to the Indian Super League (ISL). After that, they started a joint venture called Shree Cement East Bengal Foundation, in which the cement giants have a 76% stake while the club has 24.
Following the arrival of Shree Cement, a term sheet was signed by both parties in September 2020 in the presence of the Prime Minister of West Bengal, Mamata Banerjee, who played a key role in bringing the company on board as the club’s new investor. to bring.
Based on the term sheet, the club’s sports rights as well as all its assets and properties (including intellectual) were transferred to the newly established joint venture between the two parties. Although the term sheet has been signed, the officials must sign a final binding agreement with the agreement despite several reminders.
Shree Cement has already sent a revised version of the final deal to the club on August 16, awaiting a response from club officials.