Special Correspondent

BANGALORE: Karnataka Soaps and Detergents Limited (KSDL), which has roped in cricketer Mahendra Singh Dhoni as its brand ambassador, is looking for arbitration to resolve the issue of breach of contract.

The KSDL had entered into a contract with him for brand building exercise at a cost of Rs. 86.03 lakh, including the agency commission. The contract commencing from January 3, 2006, was to have ended on January 2, 2008, which, however, was cancelled on December 20, 2007. It is learnt that Dhoni made himself available only for two commercial shoots for KSDL during his contract period. Besides, he also did not agree to extend the contract for another six months.

A KSDL official said that a legal notice revoking and cancelling the agreement was issued on December 20 last. Dhoni’s reply has been received. Of the total Rs. 86.03 lakh, the KSDL has paid him and the agency Rs. 64.42 lakh, a KSDL official told The Hindu. The official said the company has to pay a balance amount of Rs. 21.60 lakh towards modelling charges and agency commission. The matter has now been referred to arbitration for seeking compensation, he added.

KSDL said it had cancelled the contract and sought Rs. 40 lakh as compensation for not honouring the contract.