Force India face legal action over F1 team's sale

Sochi, September 27: Uralkali, the Russian potash producer, has decided to take legal action against the administrators of the Force India Formula One team after losing out in what it called a "flawed sale process".

Uralkali co-owner Dmitry Mazepin is the father of 19-year-old Nikita, who is a development driver for Force India. The team are competing at this weekend's Russian Grand Prix.

British-based Force India went into administration at the end of July before a rescue deal led by Canadian billionaire Lawrence Stroll, the father of 19-year-old Williams F1 driver Lance, was announced on August 7.

The statement did not mention Mazepin but emphasised the business rationale behind Uralkali's bid.

Mazepin no se resigna a perder ForceIndia https://t.co/sCIZTWIGXN pic.twitter.com/18BU2Kmcgx

— MomentoGP (@MomentoGP) September 27, 2018

"The Company sells its fertilizers to more than 60 countries worldwide, including 20 in which Formula One holds its Grand Prix Championship," it said.

"For several years, Uralkali, together with one of its subsidiaries, has been a partner of Force India and one of the sponsors of the Russian Formula One Grand Prix in Sochi," it added.

"Force India would be a highly effective and valuable marketing tool for the business."

Uralkali said the winning bid was lower than the one it had submitted and described the responses from administrators as "inadequate".

The team was previously co-owned by troubled Indian magnate Vijay Mallya, whose assets are subject to the terms of a freezing order in favour of 13 Indian banks, and the Sahara Group.

"We had a strong business case for acquiring Force India and we believe our bid was the best one tabled," said Paul Ostling, a senior independent director of Uralkali.

The company said in a statement it had started proceedings in the London High Court and was seeking substantial damages for "prejudicial and unequal treatment".

Uralkali sues administrators of Force India F1 team https://t.co/xafQVyJe2N by @AlanBaldwinF1

— Reuters India (@ReutersIndia) September 27, 2018

However, joint administrators Geoff Rowley and Jason Baker, for FRP Advisory LLP, said, that they were unaware of any such action against them.

"No such claim has been received by us or, as far as we are aware, by the Court," they said.

"We have fulfilled our statutory duties as administrators throughout this process and ultimately achieved a very successful outcome for all stakeholders.

"Any legal action brought against us will be defended vigorously, and we are confident it would be dismissed."

France's Esteban Ocon and Mexico's Sergio Perez are the current drivers in Force India line-up.

With his future uncertain after Stroll's takeover, the rumour mill is strong that Ocon is eyeing a move to Williams.

Perez is currently languishing 10th in the F1 standings with Ocon a position behind him.

Force India are 11th in constructor's standings.

(With inputs from Agencies)