Sunday, May 6, 2012

Force India to pay 5.61 crores rupees as legal costs

Force India team, which had got into a dispute with Caterham (the erst while Team Lotus) over IPR has been ordered by the London High Court to pay legal costs to Mike Gascoyne and Caterham to the tune of 650,000 pounds which is equivalent to Rs. 5.61 crores.

Mike Gascoyne will get 4,00,000 pounds out of that amount. The balance 2,50,000 pounds will go to Caterham's holding company - 1Malaysia Racing Team.

This case started when Force India team slapped a case against Aerolabs, claiming that Aerolabs used Force India's IPR to help Team Lotus which was in its first year known as Lotus racing. Force India was earlier ordered to pay 7,08,000 pounds which equivalent to 6.114 crores in todays exchange rate.

So Force India has to pay a total of 11.7286 crore rupees. Despite this huge pay out, and one of the partner Vijay Mallya's companies having financial troubles, due to the presence of Sahara, Force India is likely to take this in its stride.

Details on the Force India team shareholding structure was provided in our earlier report:

Whether this legal costs along with the money already spent towards its own legal costs will impact any change in shareholding will not be known immediately. Stay tuned.

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