With each passing day, fresh revelations are coming out about Fairstreet Sports (FSS), which focuses a more and more sorry light on the capabilities of the Indian organiser of MotoGP Bharat (Indian Grand Prix), to deliver an event of such scale.
The Yamuna Expressway Industrial Development Authority (YEIDA) had said late last month that it would recommend the blacklisting of FSS for its failure to pay around Rs 31 crore ($3.71 million) to different vendors engaged for readying the track at Buddh International Circuit in Greater Noida.
Hindustan Times had reported that these vendors were roped in to revamp the tracks and provide other services for the MotoGP. Fairstreet also failed to pay Rs 21 crore ($2.5m) to Jaypee Group, which built the Buddh International Circuit, for using the track for the international racing event in September last year.
Per HT, YEIDA CEO Arun Vir Singh started a probe into Fairstreet’s financial irregularities on the directions of the Uttar Pradesh state government after around a dozen vendors, including Jewar MLA Dhirendra Singh, wrote to the UP chief secretary and the Yeida CEO accusing Fairstreet of committing financial irregularities and cheating vendors.
The results of that investigation, which per Times of India was submitted on June 10, has found Fairstreet Sports guilty of not clearing vendor liabilities.
The damning report, accessed by TOI, reads: “Fairstreet Sport, an unlisted private company with an authorised share capital of Rs 10 lakh and total paid up capital of Rs 1.27 lakh, was formed/registered on May 12, 2022.
“The company had a contract with Dorna, the licence holder company conducting MotoGP, to organise the event.
“Despite having no prior experience to organise MotoGP, Fairstreet Sport signed a contract with Invest UP to organise this event. As a result of the company’s inexperience, irregularities occurred.”
HT quotes Singh as having said: “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 firm) 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.”
Per TOI, a meeting has been called by the state government on Sunday, June 16 to discuss funding for future MotoGP races and establishing an organising committee.
Yeida said it paid Rs 11.5 crore to Fairstreet for the event, while Noida authority, Greater Noida authority and Invest UP each gave Rs 3.5 crore.
“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,” Singh told HT.
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,” Singh had told HT.
