New Delhi, Sep 19 (IANS): Kochi Tuskers have threatened legal action after the Indian Premier League (IPL) franchise's contract was terminated by the Board of Control for Cricket in India (BCCI) at its Annual General Meeting here Monday.

The BCCI terminated Kochi Tuskers' contract after the franchise, despite repeated reminders, defaulted on a Rs.156 crore annual payment it was to make as bank guarantee.

"Because of the irremedial breach committed by the Kochi franchise, the BCCI has decided to encash the bank guarantee in their possession and also terminate the franchise. We have terminated the franchise because the breach is not capable of being remedied," said new BCCI president N.Srinivasan in Mumbai.

But Kochi Tuskers director Mukesh Patel told IANS that they don't have any dues outstanding and in fact the BCCI owes them Rs.12-15 crore next month as a share in the central revenue.

"We don't have any outstanding dues with the BCCI. The termination is illegal. We will take them (BCCI) to court. In fact, the BCCI will be paying us Rs.12-15 crore next month as a part of our central revenue," said Patel.

The franchise was bought by a consortium, comprising some Gujarat-based businessmen, last year for a whopping Rs.1,550 crore. According to rules, franchises have to pay the amount in 10 equal instalments.

It has been in the news right from the start due to rift between the owners, who also wanted to shift the team's base to Ahmedabad.

The BCCI in the past had also turned down Kochi Tuskers' request to cut down their franchise fees. Kochi owners were promised 18 games in the Invitation to Tender (ITT) document but it was cut down to 14 as the fourth edition was reduced to a 74-game tournament.

The IPL was earlier planned to be a 94-match tournament but due to hectic international calendar it was cut down to 74 matches.