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Last August saw the inaugural Kuala Lumpur City Grand Prix take place, and following the event, race organiser GT Global Race had said it was set to commence early preparations for this year’s race.

Developments since then have seen GT Global apparently lose the rights to hold the event, with a new race organiser having being appointed. Now, a report indicates that there’s a court action in the mix, which might prevent the new company from holding this year’s street race.

According to Free Malaysia Today, one of the GT Global shareholders has filed an application for a court injunction to stop City Motorsports – which is planning to hold the KL City 400 Supercar Extravaganza on August 12-14 – from holding any street race in the city.

In January, Kuala Lumpur City Hall (DBKL) – which holds the “keys” to the running of such an event – was said to have terminated an agreement it had with GT Global, which gave the company the right to hold the race for five years. Back in August, it had promised to carry out a post-mortem following the 2015 race to determine if the race could be continued.

Earlier this month, racing website speedcafe.com reported that City Motorsports had been appointed as the new promoter of the event. The new organiser was said to have signed a fresh five-year contract with V8 Supercars to run the series in the KL city race.

A source told the publication that a dispute between GT Global shareholders had resulted in the court action, with suits filed for alleged conspiracy, fraud, breach of fiduciary duties, breach of contract, procurement of a breach and/or unlawful interference. These suits, the FMT report added, are directed against individuals tied to either last year’s race or this year’s race or both.

The report also adds that legal action has also been initiated against DBKL, the Federal Territories Minister and the Kuala Lumpur Mayor for breach of contract, procurement of a breach and/or unlawful interference.

According to the source, several police reports have been made, including one over the alleged misappropriation of RM3.5 million of a RM30 million grant – said to have been approved by the government – for last year’s KL City GP.

In early March, FMT had reported that DBKL had stated it would not give its approval for any street car race in the city if organisers of such an event couldn’t come up with the funds for it. The statement was made amid reports that the KL City 400 Supercar Extravaganza had already been scheduled.

The 2015 race certainly had its share of controversysafety concerns were initially aplenty, and during the event, there were claims by businesses situated within the vicinity of the 3.2 km track that they had been badly affected, incurring as much as three to four days’ worth of losses over the period due to a lack of traffic.