Dhoni in trouble after endorsing competing gyms
NEWDELHI: Former India captain MS Dhoni could land himself in trouble for endorsing two competing gym and fitness chains.
The Delhi High Court has recently issued a notice to Dhoni on a petition seeking to restrain him from endorsing Fit7, a gym and fitness chain, on the ground that he already has an exclusive endorsement agreement with Sportsfit World Private Limited (SWPL). The high court has also sought response from SWPL, its directors, and Fit7 World Private Limited and posted the case for a hearing on September 13.
Vikas Arora, a 33% stakeholder in SWPL, has contended in his petition that the directors of SWPL have decided not to act against Dhoni despite clear breach of endorsement agreement.
Arora, who has invested ~22 crore in SWPL, said due to differences with 65% majority stakeholders - Rhiti Sports Management Private Limited and Rhiti MSD Alamode Private Limited - he has agreed to exit SWPL at predetermined price. A separate proceeding in respect of the buyout has already been initiated, he said.
Arora also claimed he has instituted criminal proceedings against Dhoni at Punjab and Haryana High Court. “The breach of the agreement committed by respondent no. 1 (Dhoni) will cause great prejudice to respondent no. 4 (SWPL) and prevent it from optimally utilising the benefits thereunder,” his petition said.
Admittedly, Arora has filed the petition as a “derivative action” on behalf of SWPL as he does not have ‘personal right’ to seek such relief.
He alleged in his petition that the management of SWPL was “clearly not interested in protecting the interest” of the company.
Sanjay Pandey, one of the directors of SWPL, told Hindustan Times that, “Arora has filed a frivolous petition which is totally baseless and even the maintainability of the petition has been questioned by the High Court”.
Pandey said the petition was filed as “a pressure tactic to blackmail and to unnecessary drag and malign the name of MS Dhoni into an unnecessary controversy”.
It is also to “pressurize the company from withdrawing its complaints and claims made against Vikas Arora and his accomplices for various breaches, defaults and illegalities committed by them in the past,” Pandey said.
“In fact the present management is trying to undo the huge financial losses caused to the company by Vikas Arora and his accomplices who have swindled large sums of money running into several crores from the company,” Pandey contended.