Reacting to reports over Kundra's involvement in betting, the Rajasthan Royals said that he would also forfeit his shares in the franchise if he has breached any regulations.
"As a franchise, we have always been clear that the same rules apply to players, management or owners. As such, our actions will be consistent as in the case of the spot fixing allegations with respect to our players," Rajasthan Royals Chairman Ranjit Barthakur and CEO Raghu Iyer said in a statement.
"Mr. Raj Kundra is a minority (11.7%) shareholder, and he has no involvement in the running of the franchise. We believe that Mr. Raj Kundra is a law abiding citizen and would not act contrary to law.
"If however, he is proven guilty, or has breached any regulations, he will be suspended, and he will also forfeit his shares. This is a strict governance procedure agreed to by all Rajasthan Royals shareholders, and it is consistent with our zero tolerance approach," the statement said.
The franchise statement is seen as a clear attempt to distance itself from Kundra as it faced the prospect of their contract being terminated.
As per clause 11.3 (C) of the franchise agreement, a team can be terminated in the event of any of the owners bringing the game into disrepute.
The BCCI has called an Emergent Working Committee meeting here on Monday to discuss the Kundra issue and take action if required.
Chennai Super Kings also finds itself in a similar problem with its Team Principal Gurunath Meiyappan, who is the son-in-law of BCCI President N Srinivasan, being suspended on charges of betting. The CSK has, however, denied that he is an owner of the team.