New Delhi: Alleging a nexus between Uttar Pradesh Chief Minister Mayawati and a real estate group, BJP on Tuesday sought to know from the BSP leader why the poor state had waived off taxes on the Formula One race being organised by the business house.

"How much 'tax' did Jaypee Group pay Mayawati, so that the poor state of UP waives its tax earnings on F1 race," BJP National Secretary Varun Gandhi said.

The UP government has waived off the taxes for the event, being organised by the Jaypee Group and to be held in Greater Noida, prompting the Supreme Court to ask the state why it was doing so.

Defending the tax exemption, Sameer Gaur, MD and CEO Jaypee Sports International, said it "was given to us by the UP state government since Formula 1 is an entertainment industry."

A Supreme Court bench headed by Justice DK Jain also issued notice to Jaypee Group, organiser of the sporting event, and asked them to file their response by Friday on why the event was given exemption from entertainment tax.

The court passed the order on a PIL challenging the state government decision to grant tax exemption to the event.

India's first Formula 1 event is scheduled to be held on October 30.

The Jaypee Group has several infrastructure projects in western UP.

Gandhi also expressed his displeasure at the euphoria for the forthcoming event.

"When did we become a nation that idolised the synthetic, tacky glamour of F1? To me, it's as much a sport as WWE is," he said.

Asked if his company would reply to the Supreme Court notice, Gaur replied in the affirmative.

On media reports about threat of a farmers' agitation, Gaur told reporters, "We have been working on this project with the cooperation of local people and the state government. We have full consent of the farmers and the state labour authorities."

He indicated that the controversies could be due to the fact that a private sector company's name has been associated with the project.

"I assure you that there should not be a problem and it will be a peaceful and successful event," he asserted.

(Agencies)