Fiat said on Thursday it would pay the 1.13 crore duty on the Ferrari-360 Modena that it gifted to cricketer Sachin Tendulkar.

This gesture is 'in keeping with the spirit in which the gift was given', Fiat said in a statement in Mumbai.

"Tendulkar has given consent to this arrangement," a Fiat spokesperson said.

The Ferrari was draped in controversy after it was reported that the batting maestro had requested a custom duty waive on the car despite getting it as a gift and not winning it as a prize in any tournament.

On Wednesday the Delhi high court had issued notices to the cricketer and the Union finance and sports ministries in this regard.

Taking suo motu cognisance of various reports regarding the waiver, Justice Vikramjit Sen said the matter would be treated as a public interest litigation and directed the same be listed for hearing on August 19.

According to the court order, Tendulkar was to be served notice through the Bombay Cricket Association and the Board for Control of Cricket in India.