Lawyer Ashish Mehta read out a statement to NDTV news channel saying Ms. Pushkar had “voluntarily” given up the sweat equity Rendezvous Sports World had offered her.
In the statement Ms. Sunanda has said she was shocked to find "certain vested interests" questioning her credentials and because of the "unpleasant publicity" she was opting out.
Ms. Sunanda further said, "as a woman professional, I am shocked to find how easily certain parties with vested interests, questioned my credentials mainly because I am a woman. I, therefore, voluntarily offer to return to Rendezvous the sweat equity they had offered me.
"I do not intend to seek compensation for the efforts I have made so far for them. As a mother of a half-Malayali son, I wish Kerala cricket well and I hope this team succeeds handsomely in IPL-4 and in the years to come," she said.
She had been looking forward to "contributing over the next ten years to building the team's brand, organising events for it and marketing the team in India and the Gulf in particular."
"Given the deeply unpleasant publicity surrounding my involvement however, I can no longer imagine being able to find the enthusiasm required to associate myself with any IPL activity in foreseeable future."
“The decision has nothing to do with Tharoor. This is her own decision,” he said. Rendezvous Sports World is a member of the consortium that won the Kochi Indian Premier League (IPL) franchise.
What is Sweat Equity, What Does the Term Mean ?
Sweat equity is a term used to describe the contribution made to a project by people who contribute their time and effort. It can be contrasted with financial equity which is the money contributed towards the project. It is used to refer to a form of compensation by businesses to their owners or employees. The term is sometimes used in partnership agreements where one or more of the partners contributes no financial capital. In the case of a business startup, employees might, upon incorporation, receive stock or stock options in return for working for below-market salaries (or in some cases no salary at all).
The term is sometimes used to describe the efforts put into a start-up company by the founders in exchange for ownership shares of the company. This concept, also called "stock for services" and sometimes "equity compensation" or "sweat equity" can also be seen when start-up companies use their shares of stock to entice service providers to provide necessary corporate services in exchange for a discount or for deferring service fees until a later date, see e.g. "Idea Makers and Idea Brokers in High Technology Entrepreneurship" by Todd L. Juneau et al., Greenwood Press, 2003, which describes equity for service programs involving patent lawyers and securities lawyers who specialize in start-up companies as clients.