News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

This article was first published 9 years ago
Rediff.com  » Sports » Sahara is by no means financially weak and Force India will race on: Mallya

Sahara is by no means financially weak and Force India will race on: Mallya

November 10, 2014 21:42 IST
Get Rediff News in your Inbox:

'Sahara is by no means financially weak or bankrupt'

'All this speculation I think needs to stop'

'It’s not doing anybody any good...the bottom line is we’re OK'

Vijay Mallya

Chairman of Force India F1 team, Vijay Mallya, poses with the new Force India Formula One Team car on display. Photograph: J. Adam Huggins/Getty Images

Force India co-owner Vijay Mallya has rejected speculation about his Formula One team's finances, saying they will be racing for years to come.

Speaking at the Brazilian Grand Prix, where only nine teams competed on Sunday, Mallya said Force India would not be following Marussia and Caterham onto the sporting scrapheap.

"All this speculation I think needs to stop," the liquor baron said. "It’s not doing anybody any good...the bottom line is we’re OK."

Mallya said the team's 2015 car was almost ready. Asked whether Force India would be definitely racing in 2015 and beyond, he replied: "Of course. Absolutely."

Since last month's Russian Grand Prix, Marussia have folded and Caterham gone into administration.

Vijay Mallya

Vijay Mallya, centre, at the F1 Rocks India Afterparty. Photograph: Andrew Caballero-Reynolds/Getty Images

Force India, Lotus and Sauber, whose finances have also caused concern, want a more equal distribution of the sport's revenues but their request for a 'base payment' appeared to have fallen on deaf ears in Brazil.

Commercial supremo Bernie Ecclestone told reporters on Sunday that the teams as a whole shared $900 million in revenues and ruled out extra payments.

However, Mallya said Ecclestone had told him he was meeting Donald Mackenzie, co-chairman of rights holders CVC, to discuss the matter on Tuesday. "If I don't hear by the end of the week I'll send him a gentle reminder," he added.

Force India is co-owned by Mallya and the Sahara Group run by Subrata Roy, one of India's best known tycoons, who is in a Delhi jail over the conglomerate's failure to refund billions of dollars raised in outlawed bonds.

"Sahara is by no means financially weak or bankrupt," said Mallya. "On the contrary Sahara has a huge amount of financial resources. It is just that they have been asked to refund money to investors and there’s a dispute there."

Mallya also has troubles of his own, with United Bank of India in September declaring him and his grounded carrier Kingfisher Airlines "wilful defaulters", although a court has halted execution of the decision.

Debt-laden Kingfisher has not flown for two years for want of cash.

A report in Britain's Sunday Telegraph said Force India had reported a net annual loss of 38.5 million pounds ($61.21 million) to Dec. 31, 2013. That was up from a previous 33.4 million.

Get Rediff News in your Inbox:
Source: REUTERS
© Copyright 2024 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

INDIAN PREMIER LEAGUE 2024

INDIAN PREMIER LEAGUE 2024