The 1000 hectare land parcel was allotted to the Jaypee Group on which the BIC is located, and the allotment was cancelled owing to the company’s several non-payment of dues in other projects.
The Buddh International Circuit (BIC) has been hit by issues once again as the Yamuna Expressway Authority cancelled the allotment of 1000 hectares of land in Greater Noida to the Jaypee group on Saturday. India’s first and only F1 track is located in this land as part of the Yamuna Expressway Industrial Development Authority’s (YEIDA) special economic zone. The cancellation arises due to the promoters’ non-payment of dues across multiple projects that prompted the authorities to take the action. The decision was taken in YEIDA’s 66th board meeting.
According to a report by PTI, Arunvir Singh, CEO – YEIDA said, “A thousand-hectare land was allotted to Jaypee Sports Limited, an affiliate of Jaypee group, in YEIDA’s special economic zone. Jaypee Sports Limited has been defaulting on payments to YEIDA and not completing projects promised to buyers.
Singh added that the embattled business group has defaulted payment of over ₹ 500 crore. The Jaypee group has sub-leased plots to 11 builders on the allocated land and had taken about ₹ 2000 crore separately from home-buyers in 10 projects but not delivered it. In light of the violation of lease deeds, the board decided to cancel the allotment of the land. However, the authorities are working to save the interests of the home-buyers and third parties involved that had invested in the projects in this land parcel.
It’s unclear at the moment as to what will happen to the BIC, owing to the decision. The race track has not seen an F1 race since 2013, while it was a part of the Formula 1 calendar since 2011. It was speculated that the Indian Grand Prix will return for the 2016 season but tax disputes between F1 and the Uttar Pradesh government ruled that out.