New Delhi, Oct 21 (IANS): Jaypee Sports International Limited, the organisers of Formula 1 (F1) race event later this month in Greater Noida, have to deposit entertainment tax for which it has been given exemption by the Uttar Pradesh government, the Supreme Court said Friday.

Justices D.K. Jain and Anil R. Dave issued the directions on a petition challenging the grant of entertainment tax exemption on the sale of tickets for the event.

This would be a dampener for the organisers, senior counsel Mukul Rohtagi appealing for the organisers said.

"We fail to understand how our directions to deposit the amount of exempted entertainment tax in a separate account be a dampener for the event or lead to an adverse publicity," the court asked.

The court has given the state government four weeks to file its reply.

The court will also examine whether the setting up of the track was in consonance with the development scheme of the area.