New Delhi, October 18
The Supreme Court today sought explanation from the Uttar Pradesh Government for granting tax exemption to the company organising the Formula 1 event in Greater Noida.

A Bench headed by Justice DK Jain also issued notice to Jaypee Group, organiser of the sporting event, and asked them to file their response by Friday on why the event was given exemption from entertainment tax.

The court passed the order on a PIL challenging the state government decision to grant tax exemption to the event. India’s first Formula 1 event is scheduled to be held in Greater Noida, adjacent to the national capital, on October 30.

“The Formula 1 racing is an elitist and dangerous sport, there was no justification for the state government of Uttar Pradesh to grant exemption from payment of entertainment tax to M/s Jaypee Sports International Ltd,” the petitioner said.

The petitioner also submitted that the private company is politically well connected with the present BSP government due to which it had been granted tax exemption.

“The aforesaid exemption from the payment of entertainment tax has been granted to the said private respondent purely because it is well known that the company is very close to the political leadership and the ruling government in the state,” the petitioner, Amit Kumar, claimed in its petition.

“The said exemption from the payment of entertainment tax has benefited the organiser to the tune of crores of rupees, all at the cost of the exchequer and the tax-paying citizen of this country,” Kumar added.

“The racing sport has no connection with the general populace at grass-roots level and panders to the tastes of the very rich and the social and financial elite and therefore the grant of exemption from the payment of entertainment tax was not warranted in the facts of the case,” he said.

The Bench, after hearing his contention, agreed to give urgent hearing to the PIL as the event is scheduled for October 31. It listed the matter for further hearing on 
Friday. — PTI