Why should State spend public money on Formula 4 night race event in Chennai? asks Madras High Court

The Madras High Court on Friday asked why the Tamil Nadu government should spend over ₹40 crore from the State exchequer on the upcoming Formula 4 night street race event in Chennai to help private organisers earn "massive revenues.".The Formula 4 night race is scheduled to be held in Chennai on December 9 and 10.A Bench of Justices R Mahadevan and Mohammed Shaffiq asked the government to clarify whether it had an understanding with Racing Promotions Private Limited, the organisers, on sharing the revenue generated from the event..The Court also asked whether existing statutes provided for funding of such events by the Tamil Nadu Sports Authority (TNSA) as was being done in the present case.“Do you have an answer to the Senior Counsel’s submission that the State government is paying crores to help organise a private event that will help generate massive revenues for the private respondent?” the Bench asked Tamil Nadu Advocate General R Shunmughasundaram..Senior Advocate V Raghavachari, who was appearing for one of the three petitioners opposing the event, submitted that the TNSA had been asked to release ₹15 crore as the first instalment for the event.Raghavachari told the Court that the event was a result of Chief Minister MK Stalin’s whim, and that there existed no statutory provision to allow such funding. He further said that the State Town Planning Act only provide for funding for development activities and asked whether the private racing event can be categorised as such.Advocate Preetika Dwivedi, who also appeared for the petitioners, raised concerns regarding the potential sound pollution, safety and environmental threats to residents as a result of the event..The Advocate General, however, told the Court that there existed a precedent where States spent public money for the Indian Premier League (IPL).“Such type of racing is a widely accepted in other countries and we want to introduce it to our youngsters here,” Shunmughasundaram said.The AG also submitted that the State did have an agreement, as per which it will have a share in the revenue generated from the event..The Court ultimately directed the State and Racing Promotions to produce details of the Memorandum of Understanding between both parties on December 4, the next date of hearing.