Formula E: IAS officer Arvind Kumar issued a memo for revising agreement

Hyderabad: Former special chief secretary of the municipal administration, and urban development (MAUD) department Arvind Kumar, has been issued a memo for improper approvals and paying Rs 46 crore to Formula E.

Chief Secretary Shanti Kumari issued the memo on January 6, 2024. He has been asked to explain why was the decision taken and why was the money paid without proper approvals from the departments in the secretariat.

Action taken during MCC

He has been asked why was the revised agreement for the Season-10 Formula E event taken during the Model Code of Conduct. Why was the decision taken without the permission of competent authority?

Not following business rules

The amount of Rs 46 crore was paid to Formula E and Rs 9 crore as tax from Hyderabad Metropolitan Development Authority resources. The letter stated: “Even before the agreement was signed, the amount was paid without obtaining the concurrence of HMDA’s Board of Directors as well as the Finance Department of the state government.”

Book laws

According to Article 299 of the Constitution of India, contracts made in the exercise of the executive power of the Union or a State shall be made by the President or Governor of the State. The question raised is why formal consent from the Competent Authority was not taken when a major policy decision involving huge financial commitment or conduct of Formula E was taken.

Arvind Kumar has already been transferred from the MAUD department to the revenue department in Telangana. He has been asked to respond within seven days. The letter further stated that the lapses will initiate action and if ‘no explanation’ is issued there will be further action taken on the ‘available records’.

Formula E becomes a political tool

The cancellation of Formula E on January 5h was announced by the company on X. The race in Hyderabad which was (Round 4) was scheduled on Saturday, February 10th, 2024. 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.

Former BRS minister K T Rama Rao tweeted that it is a dent for the brand Hyderabad. Sama Ram Mohan Reddy, official spokesperson for Telangana Congress said, “When the election was being conducted why were steps taken by the department to pay money to the company? The department didn’t wait for the government to come to power. These are serious lapses."

Reddy says, "In the heart of the city, people faced traffic problems for seven days during the Formula E races. Such events whenever organized must be on the outskirts."

The Congress government will go by the priorities of the people.

The races are officially cancelled and the government is looking at lapses within the department and action to be initiated.