Hyderabad : – In a significant development, the Telangana government has served a memo to senior IAS officer Arvind Kumar for alleged ‘serious violations’ in connection with the Formula E race agreement.
The memo, issued by Chief Secretary A. Santhi Kumari, raises concerns over the conclusion of agreements with Formula E Operations (FEO) for the conduct of Formula E racing events in Season-9 and Season-10 in Hyderabad.
Arvind Kumar has been asked to explain why a substantial financial expenditure of Rs 46 crore, plus a tax amount of Rs 9 crore, was paid from the Hyderabad Metropolitan Development Authority (HMDA) resources even before the agreement was signed. The memo highlights that this payment was made without the concurrence of HMDA’s Board of Directors and the Finance Department of the state government.
The Chief Secretary’s memo instructs Arvind Kumar to provide an explanation within seven working days, addressing the lapses and justifying why suitable further action should not be initiated.
The officer, formerly the Special Chief Secretary of Municipal Administration and Urban Development, was transferred to the role of Special Chief Secretary of Revenue after the change in government last month.
The memo, dated January 6, coincided with the announcement of the cancellation of the second Formula E race (Season 10) scheduled in Hyderabad for February 10. The cancellation followed the Telangana government’s decision not to fulfill the Host City Agreement, signed on October 30, 2023, leading to a breach of contract notice from FEO.
The government’s concerns, as outlined in the memo, include the absence of due process approval for the tripartite long-term agreement with FEO and a private organizer. It questions the lack of permission for the revised agreement entered for Season-10, particularly during the Model Code of Conduct enforced by the Election Commission of India.
The memo also raises queries regarding the designation of HMDA as the nodal agency for hosting and conducting the event without the required approval from competent authorities, as mandated by the Secretariat Business Rules.
The memo further underscores constitutional obligations, emphasizing that formal consent from competent authorities should have been obtained for major policy decisions involving significant financial commitments.
This development adds a layer of complexity to the Formula E saga in Hyderabad, prompting further scrutiny into the decision-making process and financial transactions related to the racing event.
