'Breach of contract': Formula E cancels event in Hyderabad; issues notice to MAUD

Hyderabad: Ending speculation, Formula E announced the cancelation of the much-hyped event in Hyderabad scheduled for February.

In a post, Formula E management confirmed the cancellation after receiving the communique from the new Telangana government.

“We have announced an update to the Season 10 calendar, with the cancellation of the Hyderabad E-Prix, scheduled for Saturday 10th February,” posted the hosting company on X.

The race was scheduled to be held on Feb. 10 and was part of a multi-year deal. The Hyderabad E-Prix would have been the only official FIA World Championship event in India in 2024 and was part of a multi-year agreement between Formula E and the Government of Telangana.

The cancellation comes following a decision by the Municipal Administration and Urban Development Department (MAUD), under the control of the Government of Telangana, not to fulfil the Host City Agreement signed on 30 October 2023.

“Formula E Operations has been left with no choice other than to formally give notice to Municipal Administration & Urban Development that it is in breach of contract. FEO is considering its position and what steps it may take under the Host City Agreement and applicable laws,” a release stated.

“We are extremely disappointed for the huge motorsport fanbase in India. We know that hosting an official motorsport world championship race is an important and prestigious occasion for Hyderabad and the whole country,” said Alberto Longo, Co-Founder and Chief Championship Officer, Formula E in a statement.

Jeff Dodds, CEO, Formula E, said: “It is deeply frustrating that we cannot build on the success of the inaugural race last year, which delivered almost 84m USD in positive economic impact to the region. We are also disappointed for our major Indian partners, particularly Mahindra and Tata Communications. Racing in Hyderabad was important to showcase the benefits of adopting electric vehicles in a market where pollution from vehicle engines has a massive impact on public health and the environment.”

Formula E confirmed that it will not be replacing the Hyderabad E-Prix, reducing the upcoming season to 16 races across 10 events.

In the last one week, Formula E has raised fresh concerns, saying it might not be able to go ahead with the round scheduled for February 10. The inaugural electric race in the country was held in February this year with the IT Minister KT Rama Rao playing a huge role in bringing the race to the city. However, KTR's BRS party lost the state election to Congress in December.

Considering the operational challenges involved in hosting the first race, Formula E had dropped Hyderabad from the provisional calendar before including it in the final calendar in October.

The change of guard has put them in a tough spot with the Congress government's letter to Formula E adding to its woes ahead of the race in six weeks. "Following a recent official communication received from the new Government of Telangana, Formula E is seeking urgent clarification of their contractual commitments under the agreement and how it could impact the Hyderabad race.

"Based on the content of the letter received, Formula E is concerned the race will not be able to go ahead as planned," Formula E said in a statement. Formula E officials had met members of the new government earlier this month.

Initially, a four-year agreement was signed between Formula E, the Telangana government, and Greenko, which pulled out of the event after the inaugural edition.

"Formula E's senior executive team met with the new leadership of the Government of Telangana immediately following elections earlier this month. Discussions have been ongoing since then.

The inaugural Hyderabad E-Prix in February this year returned almost 84 million USD in positive economic impact to the region, many times more than the overhead costs invested by Formula E and the Government of Telangana. The cost of holding a Formula E race varies. The first race in Hyderabad cost the stakeholders more than Rs 150 crore. It was the first FIA World Championship status event held in India in 10 years, following Formula 1's departure in 2013.

Formula E is staged around the world and in iconic world cities including Tokyo, Berlin, and London.