Telangana government has decided to take legal action to recover the amount of Rs 55 crore paid to Formula E organisers. Deputy Chief Minister Mallu Bhatti Vikaramarka on Tuesday said that the Telangana state government would pursue legal action concerning the bipartite agreement between the Municipal Administration & Urban Development (MA&UD) department and Ace Next Gen – the official promoter of the Formula E Race in India.
At a press conference, the deputy CM said the bipartite agreement was executed in violation of the Secretariat business rules, lacking approval from the minister concerned or the Cabinet.The former MA&UD Special Chief Secretary, Arvind Kumar, initiated an agreement on October 30, 2023, committing to a total payment of Rs 110 crore and sanctioning an initial sum of Rs 55 crore. A memo was also served to IAS Arvind Kumar for ‘serious violations’ with regard to the Formula E race agreement.
According to the memo issued to Kumar by Chief Secretary A. Santhi Kumari, the amount was paid without obtaining the concurrence of the HMDA’s Board of Directors as well as that of the Finance Department of the state government. The officer has been asked to give an explanation in seven working days as to why suitable further action should not be initiated for the lapses. Arvind Kumar was then Special Chief Secretary, Municipal Administration and Urban Development. However, after the Congress party came to power last month, he was transferred and posted as Special Chief Secretary, Revenue.
Deputy CM Vikaramarka also argued that while the promoter (Ace Next Gen) made money through ticket sales, while Formula E received its “rightful share” for organising the race. However, the state government, despite being a part of the agreement, lacks information on the amount the promotor generated. Officials have been instructed to gather these details.
At a press conference, the deputy CM said the bipartite agreement was executed in violation of the Secretariat business rules, lacking approval from the minister concerned or the Cabinet.The former MA&UD Special Chief Secretary, Arvind Kumar, initiated an agreement on October 30, 2023, committing to a total payment of Rs 110 crore and sanctioning an initial sum of Rs 55 crore. A memo was also served to IAS Arvind Kumar for ‘serious violations’ with regard to the Formula E race agreement.
According to the memo issued to Kumar by Chief Secretary A. Santhi Kumari, the amount was paid without obtaining the concurrence of the HMDA’s Board of Directors as well as that of the Finance Department of the state government. The officer has been asked to give an explanation in seven working days as to why suitable further action should not be initiated for the lapses. Arvind Kumar was then Special Chief Secretary, Municipal Administration and Urban Development. However, after the Congress party came to power last month, he was transferred and posted as Special Chief Secretary, Revenue.
Deputy CM Vikaramarka also argued that while the promoter (Ace Next Gen) made money through ticket sales, while Formula E received its “rightful share” for organising the race. However, the state government, despite being a part of the agreement, lacks information on the amount the promotor generated. Officials have been instructed to gather these details.
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