Supreme Court gives conditional nod for F1 race

NEW DELHI: The Supreme Court on Friday granted a conditional nod for organising the country's first Formula 1 race in Greater Noida on October 30. It asked the organiser of the event to deposit 25% of the amount collected from the sale of the tickets in a separate account.

A bench comprising Justice DK Jain and Justice AR Dave said that the amount will be subject to the final outcome of a plea challenging tax exemptions accorded to the organiser of the Formula 1 race. The court is examining the legality of the tax exemption granted by the Mayawati-led UP government to the organiser of the event.

It turned down the plea of the senior counsel Mukul Rohatgi representing the organiser, Jaypee Group, that any court direction to them will adversely affect the publicity for such international event being orgainised in India.

"How can it be a dampener or cause adverse publicity we do not understand," the bench remarked.

While passing its interim order, the SC made it clear that it is not examining the legality of the event but the validity of the tax exemptions.

The court asked some posers to the organiser and the state government. Ex-solicitor general Gopal Subramanium on behalf of the state government said the event is part of a special development zone project undertaken by the state for developing infrastructural facilities for industrial, residential and sports activities.