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Mumbai - The new owners of English Premier League side Blackburn Rovers, Indian poultry firm Venky's, are facing a claim for more than five million dollars for allegedly reneging on a proposed joint venture deal.
Mumbai-based businessman Saurin Shah told AFP he had issued a legal notice to the firm over a proposed tie-up for the Blackburn bid between Venky's and his investment firm, Qubic Group.
The notice alleged that Venky's, which completed the deal in November for 23 million pounds, was liable for the equivalent of a 24 percent stake in the club, as agreed in early talks between Venky's and Qubic.
Venky's were also bound to pay Qubic's costs and expenses for its "advice, reference and recommendations", the legal notice said.
Shah's lawyers wrote to Venky's parent company Venkateshwara Hatcheries Group on December 22, threatening legal action unless payment was made within seven days.
The correspondence claims that Venky's successful bid for Blackburn was the result of work put in by Shah, who was therefore entitled to payment.
Shah, who had been looking to buy Rovers himself, told AFP that Venky's had "backstabbed" him and completed the deal independently, with a "dishonest" motive of depriving Qubic.
"This is unethical and nothing less than a highway robbery," he told AFP.
AFP contacted Venky's several times for a response to the allegations but the company did not reply.
Venky's sacked Blackburn manager Sam Allardyce earlier this month after a defeat to his old club Bolton Wanderers that left the Ewood Park side 13th in the Premier League.
Allardyce himself said he was "very shocked and disappointed" and many fans were outraged, while Manchester United boss Alex Ferguson described the move as "stupid".
Venky's are still looking for a new manager and have said the candidate needs to be British and able to take the club to a top-seven finish through entertaining football.
But injury problems and a potential lack of funds in next month's transfer window threaten that ambition.
