Government could seize India’s First Formula One track if dues not paid: All you need to know!

The Yamuna Expressway Industrial Development Authority (YEIDA) has warned of strict action if the dues owed are not paid, hinting on them losing the land along with the track!

By: | Published: December 1, 2018 5:22 PM

 

Troubled times lay ahead for India’s first Formula One track, the Buddh International Circuit as the Jaypee Group will be expected to clear dues worth Rs 108 Crore or may stand to lose the 1000 acre land allotted for the track and the surrounding Jaypee Sports City, basis reports on PTI. The host of several Formula One races since 2011, the Buddh International Circuit is located in Greater Noida on the outskirts of Delhi.

The Yamuna Expressway Industrial Development Authority (YEIDA)’s board to whom payment was due in September, has granted the Jaypee Group an additional month to clear their debt or face coercive actions including cancellation of land allotment, a senior official was quoted in saying to the PTI. Prabhat Kumar YEIDA Chairman told the PTI, that the Jaypee group owes Rs 108 crore to the authority against 1,000 hectares of land allotted for constructing the Formula One circuit and the Jaypee Sports City. Kumar ended saying that strict action against the Jaypee Group if the deadline was missed.

The Buddh International Circuit was built in 2011, and has since hosted three editions of the Formula One Race until 2013. Since then, India’s heavy taxation policy has made formula One find better prospects. The tracks affiliation to the Formula One too came to an abrupt end with Jaypee unofficially terminating their 5-year contract, burdened with bureaucratic and financial issues. Ever since the race has been more for domestic use, with track days and the occasional automotive testing, sans one odd round of the Asia Asia Road Racing Championship in 2016.

As of now, it is not known what will happen if the dues are not cleared and whether, in fact, the government authorities will take possesion of the land. We will have to wait as more unfolds, although as of the immediate circumstance things should continue largely as is.

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