HYDERABAD: Deputy Chief Minister Mallu Bhatti Vikaramarka on Tuesday declared that the Telangana state government would pursue legal action concerning the bipartite agreement between the MA&UD department and Ace Next Gen, the official promoter of the Formula E Race in India, in collaboration with Formula E.
Addressing 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. The Formula E company has served notice to settle the outstanding Rs 55 crore, he said, adding that the MA&UD department incurred additional expenses for infrastructure development.
This was carried out while the MCC for the Assembly polls were in place. Vikramarka also pointed out that instead of the original three parties, only two parties took part in the October 30 meeting, raising allegations of improper conduct.
“First and foremost, in the initial tripartite agreement, there was nothing for the state. Moreover, they proceeded to enter into a bipartite agreement in which the MA&UD Special Chief Secretary committed to paying Rs 110 crore. These agreements offer no benefits to the people. Why undertake all this? Is it merely for the Formula E people to have a glimpse of the state for Rs 110 crore,” Vikramarka said.
Hitting out at the erstwhile BRS government, the deputy CM accused them of putting the state up for sale to fulfill their desires and then crying foul over Formula E leaving the city. He questioned the actions of the then MA&UD minister (KT Rama Rao), who attended the inauguration function as a chief guest, but allegedly failed to monitor activities in his department.
“You have put the state up for mortgage to satisfy your (BRS leaders) greed and personal interests,” he criticized. The finance minister highlighted the absence of income for the state under the tripartite agreement, while Ace Next Gen and Formula E benefited financially from the agreement. “The official concerned at the time gave oral instructions and the HMDA entered into an agreement with the private entities flouting the Secretariat business rules,” he said.
He said that Ace Nxt Gen made money by selling tickets while Formula E has received its rightful share for organizing the race. Meanwhile, the state government, being a party to the agreement, lacks information on the amount Ace Next Gen has generated, Vikramarka said, instructing officials to gather these details.