Threat of cancellation for the Indian Grand Prix

The Indian activist, Amit Kumar, submitted a plea and a petition to the Supreme Court of India seeking to cancel the Grand Prix scheduled for this weekend. Indeed, the race organizers are being criticized for not having paid the “entertainment tax” for the 2012 edition.

In 2011, a public interest litigation was brought before the high court, and the organizers were ordered to freeze 25% of the ticket revenue until the tax dispute was resolved. Amit Kumar had successfully argued that Formula 1 was entertainment and not a sport, and therefore should not be entitled to the tax exemptions granted by the State of Uttar Pradesh, which borders the capital New Delhi. It is on this same principle that the activist is now requesting the cancellation of the race this year for failure to pay the tax in 2012.

Judge Sathasivam declared that he would study the appeal starting tomorrow, Friday. It would still be highly unlikely for the race to be canceled, especially since India will not host a Grand Prix next year and its long-term future is uncertain. If that were the case, Sebastian Vettel would officially become the 2013 Formula 1 World Champion, as his lead over the runner-up could no longer be caught up in the three remaining races.