Formula E: Under fire for race fiasco, Arvind Kumar says acted with KTR’s approval

Hyderabad: Refusal by a private promoter, approval by former minister of municipal administration and urban development department KT Rama Rao, and continuing Hyderabad as the host city for the Formula E race were some of the reasons that prompted the government to issue a memo to former special chief secretary Arvind Kumar.

An amount of Rs 53 crore including Rs 8 crore as taxes was paid by the government in October 2023 to continue with the races.

Arvind Kumar has to answer why and one whose behest was the money paid. The senior officer has been transferred from the MAUD department to the special chief secretary revenue department.

Formula E races

The first Formula E race was held in Hyderabad on February 2023 with Ace Nxt Gen the private promoter and the title sponsor was Greenko.

For another season in February 2024, the promoter Ace Nxt Gen didn’t come forward.

The finalization was to be done in June 2023.

Due to this reason, the government was looking for another private promoter for the event, according to Arvind Kumar.

The financial fees for the race were to be paid by the private promoter.

But as no one, came forward, Kumar in his reply says, “A file was circulated on September 25, 2023, of the proposal to conduct Formula E race with the Hyderabad Municipal Development Authority being the host city and the promoter.”

Kumar further details, “It is clarified that the Competent Authority i.e. the minister of the MAUD dept. was kept informed at every stage and that the due permission was obtained from the competent authority”

The competent authority or minister of the MAUD department at that time was K T Rama Rao.

Why did not promoter come forward?

The promoter was scheduled to handle Season 10 but he refused. The reasons for his refusal have not been put out in detail.

Government paid Rs 46 crores

Telangana government paid Rs 46 crores and Rs 8 crores as taxes to M/S ABB Formula E, the organizers of Formula E season 10 in Hyderabad.

No races

With the Congress government coming to power, the response from the government was lukewarm to the organizers. Special chief secretary Arvind Kumar was transferred and it was later found that the fees had been paid. The organizers walked out as the government’s response was not as desired.

It was then learnt that huge fees had already been paid and a memo was served to Arvind Kumar to know why was such a transaction carried out and with whose permission.

Reply based on memory

Since Arvind Kumar got transferred on December 18, 2023, to the revenue department, he asked for time to reply and also access the files in the department. But as he didn’t get access, the reply is based on “his memory and understanding of the subject”.

No misconduct or violation

Arvind Kumar has clearly stated that the department carried out ‘actions with the approval of competent authority”. There is no administrative violation, misconduct, corruption, or criminal wrongdoing. It has been done in the interest of the state and by following the proper procedures, he says.

Telangana government which has got the reply is yet to decide on the course of action.