India's first F1 circuit was sealed yesterday by the Yamuna Expressway Industrial Development Authority (YEIDA) over failure to clear financial dues by Jaypee Infratech Limited. The authority has also started the process of resale through an auction, and has issued a global tender for the same.
The action is a follow up by the authority, and has already cancelled the lease deed of the land to Jaypee International Sports company. The decision to cancel the deed was made by the YEIDA board on December 21, 2019. Sprawling over 2500 acre land in Greater Noida, the Buddh International Circuit was complete in 2011. The circuit was designed by Hermann Tilke, and was purpose built to host F1 races and other motor sport events. The circuit was part of the F1 calendar for two season (2011 and 2013) only and was embroiled in controversy subsequently and was removed from the calendar.
The action is a follow up by the authority, and has already cancelled the lease deed of the land to Jaypee International Sports company. The decision to cancel the deed was made by the YEIDA board on December 21, 2019. Sprawling over 2500 acre land in Greater Noida, the Buddh International Circuit was complete in 2011. The circuit was designed by Hermann Tilke, and was purpose built to host F1 races and other motor sport events. The circuit was part of the F1 calendar for two season (2011 and 2013) only and was embroiled in controversy subsequently and was removed from the calendar.
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| Aerial view - Buddh International Circuit |
A spokesperson for the Jaypee Infratech limited said, “We would challenge the YEIDA’s action in the appropriate court on the grounds that the lack of fulfilment of obligations on part of authority has come in the way of completing the project, whereas 90% obligations have been met by the company. The move by authority is regressive as the racing track infrastructure that hosted the F1 race, and had put India and the state of Uttar Pradesh on the global racing map, is being cancelled. Such a move will be detrimental to attracting investment in the country and the state. Jaypee has completed 90% of its obligations by way of depositing Rs 2,400 crores towards land payment till date. Further, the company invested Rs 2,000 crores towards construction of motor race track and other related developments such as cricket stadium, etc,”
KK Singh general manager (projects), YEIDA said, “A team of officials sealed multiple gates of the motor racing circuit as the developer has failed to clear financial dues. We have sealed the Formula One circuit so that the Jaypee Group does not use the property for commercial gains. All the projects located inside the Formula One circuit remains sealed now. However, the security guards and others living inside the Formula One campus will continue to carry out their duties to safeguard the property”
KK Singh general manager (projects), YEIDA said, “A team of officials sealed multiple gates of the motor racing circuit as the developer has failed to clear financial dues. We have sealed the Formula One circuit so that the Jaypee Group does not use the property for commercial gains. All the projects located inside the Formula One circuit remains sealed now. However, the security guards and others living inside the Formula One campus will continue to carry out their duties to safeguard the property”
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| Start line - Buddh International Circuit |
“As the lease deed had been cancelled, the developer is not be able to sell, mortgage or carry out any sort of transfer of this property, as the company has lost ownership of this land. The ownership will now remain with the authority,” said another YEIDA official. According to the officials, it had issued several notices since March 29, 2017, demanding dues of around Rs 600 crore.
