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Jaypee wants to recover Rs 24 crore from the dead Rs 2k crore BIC | India News

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NEW DELHI: The 2 billion rupee Formula One racing facility at the Buddh International Circuit near Greater Noida is missing and sealed, but the owners, Jaypee Sports International, moved to the Supreme Court on Thursday to pick up the crumbs, as he was seeking reimbursement for the 24 million rupees he had deposited with the court back in 2011.
The inaugural edition of the F-1 race in 2011 at BIC had a frenzied response. It was attended by Vijay Mallya, who had not yet been declared a fugitive by India. The UP government, with the intention of popularizing motorsports in India, had exempted the event’s entertainment tax. But, one Amit Kumar filed a PIL in the SC challenging the entertainment tax exemption to the event on the grounds that motor racing has no socio-economic connection to the terrestrial reality in India.
On October 21, 2011, the SC had ordered Jaypee Sports to deposit within two weeks “into an unencumbered account the amount of entertainment tax payable in terms of Section 3 of the Entertainment Tax Act. and the UP Betting of 1979, without taking into account the contested exemption notice. ” Jaypee deposited a little over 24 million rupees.
Sebastian Vettel won the inaugural edition of the F-1 race at BIC and retained the pole positions in the next two in 2012 and 2013. To Jaypee’s dismay, the enthusiasm of motorsport fans quickly waned. Footfalls plummeted for the next two editions, as did revenue. To make matters worse, Jaypee became embroiled in tax matters. It was extremely difficult for him to even pay the annual license fee to the F-1 organizers, and the chances of recouping the huge investment in BIC seemed remote. The circuit was closed.
Ironically, India’s first and only Formula One infrastructure is now sealed by the Yamuna Expressway Industrial Development Authority (YEIDA), allegedly due to Jaypee Infrastructure Limited’s inability to settle financial fees. YEIDA reportedly plans to launch a global tender to auction the complex and recoup the fees.
Appearing for Jaypee Sports International, lead attorney Arvind Datar told a bank of Chief Justice SA Bobde and justices AS Bopanna and V Ramasubramanian that the money found in the account however opened opened by the SC must be returned to your client when the events occur. exempt from entertainment tax.
This plea was rejected by the main defender RK Raizada, who ran for the UP government. He said the state government has withdrawn the notice exempting the event from the entertainment tax. “There is no question of refund,” he said.
While opining that PIL on this issue was unsustainable, the bank said it would be appropriate if the relevant legal authority conducted an investigation and reported to the SC on whether Jaypee Sports International collected entertainment tax on the tickets it sold for the F- 1. events. The court allowed Jaypee to present evidence to the authority, which said it would file a report in four weeks.

Times of India

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