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You are right. None of the Indian players are allowed to play in franchise T20 leagues outside India. If they wish to do so, then they should retire from the domestic and international cricket and do so (similar to what players such as Zaheer Khan and Yuvraj Sigh have done). But in my opinion, this is a very repressive move from the BCCI.
BCCI is the most powerful and financially sound board in the world and they decide what they want
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Well... this is not right, IMO. The IPL is truly a global league, with more than a hundred overseas players participating in it. There are instances when some of these players miss their national duty because of their commitment to the IPL. The players are benefiting from this, as their IPL salaries are manytimes what their national board would pay. But at the same time, the other cricket boards suffer due to the unavailability of these players.
Because of the high pay scale they are playing in the IPL, hundreds of overseas players are playing in the IPL but how many Indian players are playing in the franchise T20 leagues abroad ?. None of the Indian players are playing because they cannot because of the contract they signed with the BCCI.
Under these circumstances, is it correct for the BCCI to ban Indian players from participating in the foreign T20 leagues? We all know that their real intention is to cut back the popularity of these leagues (such as the Big Bash League and the Caribbean Premier League) in India, and to prevent these leagues from raking in valuable TV revenues.
Yes the players are under BCCI contract and they can restrict the players and they are doing that if you are not aware of it.