Jaypee asked to pay 100 crore to retain Buddh Circuit

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Jaypee asked to pay 100 crore to retain Buddh Circuit
Rachit Thukral
By: Rachit Thukral
Nov 29, 2018, 10:33 AM

Jaypee Group may lose ownership of the Buddh International Circuit, India’s only Formula 1 grade circuit, if it fails to clear dues of Rs 108 crore by end of the year.

Jaypee’s financial woes have worsened in recent months, with Supreme Court initiating insolvency proceedings against its main companies Jaiprakash Associates and Jaypee Infratech amid rising pressure from lenders.

Now, Yamuna Expressway Industrial Development Authority has given Jaypee a month’s deadline to pay Rs 108 crore in relation to the 1000 hectares of land it was allotted to build the sports city, including the Buddh International Circuit.

The authority also noted that it had originally asked Jaypee to meet its payment obligations by September.

"Jaypee group owes Rs. 108 crore to the authority against 1,000 hectare of land allotted for constructing the Formula One circuit and the Jaypee Sports City,” YEIDA chairman Prabhat Kumar said.

“The authority had relieved the builder and made reschedulement of the amount but the builder failed to pay instalments.

“We have given a final one month's time to clear debts or we will initiate strict action against them."

The Buddh International Circuit was built in 2011 and hosted three editions of the Indian Grand Prix through till 2013.

However, bureaucratic and financial issues forced Jaypee to unofficially terminate its five-year contract prematurely.

Since then, the circuit has been largely used for domestic races and automotive testing, although it did host a round of the Asia Road Racing Championship in 2016.

 
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Author Rachit Thukral