"Kundra has minority stake of 11.7% in the team and has no involvement in the running of the franchise," Rajasthan Royals revealed in their statement according to 'Times Now'.
Royals further added that if found guilty, Kundra will be suspended and will also be asked to forfeit his share in the franchise.
Kundra is facing accusations of betting in the Indian Premier League matches.
Delhi Police Commissioner Neeraj Kumar had said after interrogation that Kundra had admitted to betting in IPL matches. But Kundra, whose passport has been seized, remained defiant and said that the truth will come out.
Kundra on Friday appointed noted criminal lawyer Majeed Memon to defend his case.
"I have now appointed Mr Majeed Memon as my council (counsel) my official statements coming soon through Memon sir. Truth will prevail!," Kundra tweeted.
Kundra, a British national, was questioned for 11 hours on Wednesday after cricketer Siddharth Trivedi told police that the Royals owner's business partner-friend Umesh Goenka used to ask for information regarding team formation and pitches.
Neeraj Kumar had said that Kundra has admitted to betting and "he used to bet on his own team and lost a lot of money in betting".
Police sources claimed that Kundra was into betting but not into fixing.
Kundra is the second IPL team owner after Chennai Super Kings' Gurunath Meiyappan who is in the dock for alleged betting. If the charges against the owners are proved, BCCI can suspend the teams from the IPL.
He had lashed out at the media for making "stupid claims" on his alleged involvement in the IPL spot-fixing and betting scandal.
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