Will India Host 2016 Grand Prix?

After the cancellation of The Indian Grand prix in 2014, it is expected to return back to India in 2016. There was a meeting held between the race promoter and Formula one boss, Bernie Ecclestone on the inaugural event of the Russian Grand Prix at Sochi recently.

F1 Ramp Source

After hosting the Indian Grand Prix for three successful seasons, it was dropped from the calendar in 2014. The reason being that the organizers faced bureaucratic and tax hurdles. It had left all the experts and fans wondering whether it would ever come back again. The race for 2015 has already been cancelled.

There are still issues which are to be sorted out, but Formula One Management (FOM) led by Ecclestone and Jaypee Sports International (JPSI), are focusing on the five year contract first, rather than planning a future for the long-term.

Indian Grand Prix 2013 Source

Ecclestone had stated, that his meeting with Sameer Gaur at the Russian Grand Prix was “fruitful”, and that he was assured that the problems prevailing in the Indian Grand Prix scenario would be sorted eventually and that they can resume. He said that it’s too late to plan anything for 2015, hence they are working for 2016.

While Gaur, on his part emphasized, upon how Formula 1 is important for them. He added, that due to the circumstances they could not host the race this year but he reassured that things are improving.

Bernie Ecclestone Source

He also reassured that FOM and JPSI are on the same page. He explained that since the calendar for 2015 is almost final, they would be preparing for the race in 2016.

Now we need to wait and watch how the events turn out. Gaur was referring to a case regarding UK based Formula One Champions ltd and JPSI which is currently heard by the Mumbai High Court.

In 2011, before the first Grand prix took place, Authority of Advanced Ruling (AAR)’s authority was moved by F1 to make sure that the income out of it was taxable in India or not. The verdict has still not been placed yet.

A cartoonist’s impression of the F1 Racers Source

He added that the tax issues must be resolved. He didn’t want to speak much about it, since the issue lies under the Jurisdiction of the tribunal. On Ecclestone’s claim, where he said that JPSI hasn’t completely honored the contract’s financial commitments, Gaur said that all the parts in the contract have been met. But he refused to further comment on Ecclestone’s claim.

Although the things are a bit under the weather at the moment, but for the experts and the fans; 2016 is the silver lining.