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Pepsi drops sponsorship of scandal-hit Indian cricket league

PepsiCo has pulled out of a Rs4 billion ($62 million) sponsorship deal with the Indian Premier League cricket tournament, dealing a further blow to the lucrative but scandal-plagued annual event.

The US-based beverage group signed a five-year title sponsorship arrangement in 2012, but formally ended its association with the event on Sunday after just three seasons.

The Board Of Control For Cricket In India, the sport's governing body and the IPL's owners, said Chinese phonemaker Vivo Electronics would become the IPL's title sponsor for the two remaining seasons of Pepsi's contract.

Neither the BCCI nor PepsiCo commented on the reason for the termination. The BCCI also gave no details of the financial deal struck with Vivo, although in a statement it said the Chinese company would provide a bank guarantee for payment in the "next 10 days".

However, reports earlier this month in the Indian Express newspaper suggested that PepsiCo had sent a termination notice to the BCCI...