formula one

Formula 1: Vijay Mallya’s 10-year reign ends as Force India secures future with rescue deal

The team was put into administration ahead of the Hungarian Grand Prix last month following the legal action taken by its Mexican driver Sergio Perez.

The future of the Force India Formula One team was secured on Tuesday after its administrator accepted a bid backed by a consortium of investors, effectively ending Vijay Mallya’s 10-year-old reign at the midfield squad.

The team was put into administration ahead of the Hungarian Grand Prix last month following the legal action taken by its Mexican driver Sergio Perez.

According to a statement issued on behalf of administrator Geoff Rowley, all 405 jobs at Force India will be saved following a deal with the team management, joint administrators, and consortium of investors led by Canadian billionaire Lawrence Stroll, who happens to be the father of Williams driver Lance Stroll.

Commenting on the deal, Force India Chief Operations Officer Otmar Szafnauer said, “This outcome secures the future of the Force India team in Formula 1 and will allow our team of racers to compete to our full potential.

I am delighted that we have the support of a consortium of investors who believe in us as a team and who see the considerable business potential that Force India has within F1 now and in the future.”

He also acknowledged Mallya’s contribution in the success of the team.

“At Force India, our expertise and commitment has meant that we have always punched above our weight and this new investment ensures that we have a bright future ahead of us. I also would like to thank Vijay, the Sahara Group and the Mol family for all of their support and taking the team as far as their circumstances would allow,” added Szafnauer.

Mallya and Sahara had a 42.5% stake each in Force India while Mol Family owned 15%.

India is currently seeking Mallya’s extradition from the UK over unpaid loans linked to his defunct Kingfisher Airlines.

Since their first season in 2008, Force India have gone on to become a strong midfield team, finishing fourth in the past two seasons.

Support our journalism by subscribing to Scroll+ here. We welcome your comments at letters@scroll.in.
Sponsored Content BY 

Innovations in payment options are making premium products more accessible

No need for documentation or applications to own high-quality items

Credit cards have long been associated with an aspirational lifestyle. The ability to buy something out of your wish list without needing to pay the entire amount can tempt even the most disciplined shoppers. A designer couch, the latest mobile phone, a home entertainment system or a car, as long as you can pay back the borrowed amount within the grace period, your credit card purchases know no bounds.

However, credit cards, pre-approved or not, come with a number of complications. The tedious application procedure starts with the collection and submission of various documents. Moreover, there are several reasons your credit card application might get rejected including low income that compromises your repayment capability, certain occupations or work history, mistakes in the application form, possession of multiple cards or even a failed physical verification attempt. While applying for a credit card might have become easier, the success of the application can take time and effort.

Credit card owners are regaled with benefits all year round with attractive EMIs, offers on purchases, airline miles, lounge access, cashbacks and a plethora of exclusive deals. It’s worth noting that debit card owners don’t get even half of these benefits and offers, despite the sheer size of the debit card customer base in the country (846.7 million compared to 36.2 million credit card holders).

This imbalance of finance and purchase options between credit card and debit card owners is slowly changing. For instance, the new EMIs on debit card feature on Flipkart ensures affordability and accessibility to Indian consumers who don’t own credit cards. The payment innovation increases the purchasing power of the consumer. By providing credit access to non-credit card holders, expensive and high-quality products are made more affordable for a large base of customers without denting their cash flow. The video below comically captures a scenario that people who don’t own a credit card will relate to.

Play

Flipkart’s EMIs on debit card feature doesn’t require a minimum account balance, documentation, nor does it charge a processing fee, making online shopping a seamless experience even for more high-end products. To find out if you’re eligible for EMIs on debit card, see here.

This article was produced by the Scroll marketing team on behalf of Flipkart and not by the Scroll editorial team.