New Delhi: Clarifying the tax exemption for Formula 1 Grand Prix event, the Uttar Pradesh government has told the Supreme Court that the relief to F1 sporting extravaganza was granted as per the state government policy.

The state government on Friday filed its response in the Apex Court in the wake of a public interest litigation (PIL) challenging the UP government's decision of granting tax exemption to the F1 event.

The government in its reply argued that the tax relief was granted under the 2007 and 2009 policy.

But the Yumuna Expressway Authority is yet to file its response in the matter. The court has given the authority six weeks time to respond and deferred the matter till January.

The JP Group had directly acquired the land from the Yamuna Expressway Authority.

The sporting event was held in Greater Noida on October 30.

Notably, the Supreme Court had ordered the JP Group, the organizer of the event, to deposit 25 percent of all its receipts from the sale of Formula One tickets into a
separate account.

Meanwhile, the JP Group has filed an affidavit in the court challenging the PIL on the grounds that it got the tax exemption as per the government policy and nowhere it was written in the policy that the exemption would be given to a popular sport.