UP govt to GBN DM: Probe into MotoGP irregularities

The move came after Jewar MLA via a complaint in 2023 to Uttar Pradesh chief secretary sought a detailed probe into the accounts of the Fairstreet Sports

GREATER NOIDA: The Uttar Pradesh government has directed the Gautam Budh Nagar administration and other government bodies to investigate the accounts of MotoGP Bharat organiser -- Fairstreet Sports private limited -- that allegedly carried out “irregularities” in spending the public funds in organising the event on Budha International Formula One circuit.

The company, however, said they have replied along with the bills spent on organising the event and denied having committed any irregularities. (HT Photo)

The company, however, has denied to have committed any irregularity.

The move came after Jewar MLA Dhirendra Singh via a complaint in December, 2023 to Uttar Pradesh chief secretary DS Mishra sought a detailed probe into the accounts of the Fairstreet Sports for having allegedly “misled” the state machinery and “cheated” the investors and vendors associated with the mega event held in September 2023.

“As per the directions of the UP chief secretary, we are carrying out the investigation into the Fairstreet Sports’ accounts and how did this private company spent the funds that it got from the state government’s different bodies,” said district magistrate (Gautam Budh Nagar) Maneesh Kumar Verma.

“The probe will take time. But we will complete the same as soon as possible,” he said on being asked about how much time the investigation may take.

Following the state government’s orders, the Yamuna Expressway industrial development authority (Yeida) and Invest UP, including other agencies, together gave ₹18 crore to Fairstreet Sports private limited to repair the track, arrange services to guests and other works required for the MotoGP event, said officials.

Now the Yeida will also probe into the alleged irregularities commissioned by Fairstreet Sports private limited.

“We have got a letter from the state government body -- InvestUP (an investment promotion and facilitation agency) department to probe into the irregularities. We will carry out the probe and submit a report in the next 2-3 days time,” said Arun Vir Singh, chief executive officer of the Yeida.

The InvestUP department has also sought a detailed reply from Fairstreet Sports about how they used these funds collected from the government bodies.

“We have demanded a detailed investigation into Fairstreet Sports private limited’s accounts and expenditure after we got multiple complaints about this private company from the vendors, contractors and others, who were associated with the event,” said Dhirendra Singh, MLA, Jewar constituency where Formula One Circuit is located.

According to Singh, the Fairstreet Sports, a private company, which has got no adequate financial strength and experience in organising such a mega event collected over ₹200 crore from domestic and global investors.

“Also, it got ₹18 crore from state government bodies. And Fairstreet Sports cheated investors and vendors, whose payment it has not paid as yet. Earlier this private company showed that it got huge profit. And now it demands more funds from the state government showing that it has witnessed huge loss of revenue,” said the MLA of Jewar constituency in which Formula One Circuit is located.

Singh further added that he was forced to demand a probe after vendors and agencies came to his office demanding justice and also filed police complaints against Fairstreet Sports.

In his letter, the MLA alleged that the company was supposed to pay ₹120 crore as a license fee to foreign company, but Fairstreet Sports has not paid the same as yet.

“The Spanish company is being misled by the organiser and efforts are being made to get the license fee from the state government. The crores of rupees had not been paid to multiple companies which renovated the track and provided housekeeping, security, and other such services,” he said.

Meanwhile, Pushkar Nath Srivastava, the chief operating officer (COO), FairStreet Sports Private Limited, said they have got letters from InvestUP demanding verification of the funds spent on organising the event.

“We have replied along with the bills spent on organising the event. We have not committed any irregularities and replied to the state government about every detail that they asked for. We have demanded more funds from the state government to clear the payments as we witnessed a loss of revenue,” the COO said.

Around 6,000 foreigners, including 3,000 personnel of the MotoGP crew and bikers, were in Greater Noida for the racing event. Around 2,000 international spectators arrived in the city for the racing event in September, 2023. At least 82 riders from 41 teams participated in the MotoGP, Moto2.

As part of the sponsorship agreement, Fairstreet Sports was to prepare the Buddh International Circuit track in compliance with MotoGP norms.

Also, the firm was responsible for providing hotel accommodations and travel services for government officials, along with executing other deliverables outlined in the letter of award (LOA).