MotoGP organiser failed to pay ₹31 crore to vendors, finds Yamuna authority probe
Yeida CEO Arun Vir Singh started a probe into Fairstreet’s financial irregularities on the directions of the state government after around a dozen vendors as well as Jewar MLA Dhirendra Singh wrote to Uttar Pradesh chief secretary and Yeida CEO accusing Fairstreet of committing financial irregularities and cheating vendors
The Yamuna Industrial Development Authority (Yeida) on Tuesday said it will recommend blacklisting the Indian partner of MotoGP Bharat, Fairstreet Sports (FSS), for its failure to pay around ₹31 crore to different vendors engaged for readying the track at Buddh International Circuit in Greater Noida.
These vendors were roped in to revamp the tracks and provide other services for the MotoGP. Fairstreet also failed to pay ₹21 crore to Jaypee Group, which built the Buddh International Circuit, for using the track for the international racing event in September last year.
Yeida CEO Arun Vir Singh started a probe into Fairstreet’s financial irregularities on the directions of the state government after around a dozen vendors as well as Jewar MLA Dhirendra Singh wrote to Uttar Pradesh chief secretary and Yeida CEO accusing Fairstreet of committing financial irregularities and cheating vendors.
Fairstreet chief operating officer Pushkar Nath Srivastava said, “We incurred a huge loss over the event and we have written to the government demanding ₹21 crore so that we can clear the dues of vendors. We have paid money to vendors from our pocket and the remaining money will be paid once the government gives us additional funds.”
CEO Singh in his probe established that Fairstreet engaged in multiple irregularities and made false promises to vendors and the state government.
“We have come to a conclusion that Fairstreet did not have adequate experience or financial strength for such a prestigious event. We have decided to suggest to the government that it should allow partnering only with Dorna MotoGP (the foreign partnering firms) for future events. And the authority will recommend that Fairstreet be blacklisted, and Dorna should be communicated about these irregularities. Dorna should be advised to select a different Indian partner that works in a transparent and professional manner.”
Yeida said it paid ₹11.5 crore to Fairstreet for the event, while Noida authority, Greater Noida authority and Invest UP gave ₹3.5 crore each to Fairstreet for organising the event.
“Yeida spent a huge amount to improve civic infrastructure such as roads and roundabouts in the area, besides undertaking landscaping and beautification. Following the event, we had been receiving several complaints against the company about non-payment of dues to various service providers. Jaypee Group has complained of non-payment of ₹18 crore for using their tracks,” CEO Singh said.
Yeida had issued a public notice asking people and companies to submit affidavits in case they have any complaints related to the payments not cleared by Fairstreet. Subsequently 11 companies engaged in providing machinery to revamp the tracks, assistance in customs compliance and ministry-level clearances, conducting repairs, and providing upkeep facilities, arranging hotel rooms, and security agencies submitted claims of around ₹15 crore.
“A physical verification of all claims has been planned on Wednesday, and a final report will be sent to the government, mentioning the exact amount that Fairstreet owes to these vendors. Fairstreet was not the professional and technically qualified company for such a prestigious event and we hope that the state government will take note of this fact while selecting firms for future engagements,” said Singh