Sweat Equity: Sunanda Pushkar’s Magic Stone

NEW DELHI, INDIA (GaeaTimes.com)- Sweat equity happens to be the center of all discussion as it has suddenly made Sunanda Pushkar the most talked about woman in the IPL business. To make things worse we have IPL Commissioner Lalit Modi and Minister of State for External Affairs Shashi Tharoor taking sharp hits at one another.

As per the sweat equity, a whopping sum of 70 crore of equity money was handed over to Sunanda Pushkar by a consortium led by Rendezvous Sports World that happens to be a direct owner of Kochi Team. It is being said that the sweat equity deal is a magic stone for Sunanda Pushkar as her stakes are all destined to increase with better acceptability and bidding of IPL teams. As a matter of fact, she doesn’t have to shell out a single penny which is in accordance to the sweat equity plan. All other investors for Kochi shall have to push in extra funds while the stake for the shareholders is bound to go down which shall receive a severe blow once fresh shares arebeingissued in the market. In accordance to the sweat equity law, Sunanda Pushkar is also free to sell her majestic share at any point in time.

The rules for sweat equity as laid down in the year 2003 made it clear on all grounds that no company is allowed to issue its shares for sweat equity at a higher rate than 15% of the total equity capital calculated in a year to be 5 crores. No matter what the deal for any sweat equity shares, it should carry the necessary approval from the government.