The two new IPL franchises, Lucknow and Ahmedabad, on Monday (January 10) received the virtual letter of intent (LOI) from the BCCI, Cricbuzz reported.

After acquiring the Ahmedabad-based franchise for INR 5,625 crore in October last year, private equity firm CVC Capital Partners had come under the cloud for their links with betting companies abroad.

"The two teams have been cleared and we will issue the Letter of Intent (LoI) after tomorrow's GC meeting. The teams are through by all practical purposes," IPL chairman Brijesh Patel told Cricbuzz.

According to the report, the two franchises have not got the green signal yet from the BCCI to sign players outside of the auction.

Patel confirmed that the matter will also be taken up by the IPL governing council.

"We will decide on the time to be given to the teams at the GC," Patel said.

In another major development, TOI reported that star all-rounder Hardik Pandya is likely to be the captain of the Ahmedabad-based franchise.

The report further claims that Afghanistan spinner Rashid Khan could be roped in by Ahmedabad as well. Apparently, both Ahmedabad and Lucknow have been in talks with Rashid for weeks but the former looks ahead in the race at the moment. Ishan Kishan is the first-choice for the wicketkeeper slot.

On the other hand, KL Rahul is certain to take charge of the Lucknow franchise. As per the report, Sanjiv Goenka-owned Lucknow team is eyeing Australia all-rounder Marcus Stoinis and South Africa pacer Kagiso Rabada as backups if they fail to rope in Rashid Khan.

The two new franchises will have to give three names (two Indians and one overseas) before the mega auction, expected to be held in Bengaluru on February 11-12.

(With Cricbuzz/TOI inputs)