HYDERABAD: The controversy surrounding the funding for the Formula E World Racing Championship held in Hyderabad last year has resurfaced, with reports emerging that the Municipal Administration and Urban Development (MAUD) has written to the Anti-Corruption Bureau requesting an investigation into the allocation of funds for the event.
Allegations of financial mismanagement and procedural violations first cropped up soon after the change of government in the state. The second edition of the event was slated for February this year, but it was called off after the Congress government did not respond to Formula E Operations’ (FEO) requests to host the race.
Senior IAS officer Arvind Kumar was issued a memo by the state government seeking an explanation for sanctioning Rs 46 crore (plus Rs 9 crore in tax) from HMDA funds. The expenditure was reportedly approved without the consent of the HMDA Board or the Finance department. Arvind Kumar was also asked to clarify why the agreement was executed when the model code of conduct was in force in Telangana.
The memo was issued by Chief Secretary A Santhi Kumari on January 6, 2024, the day the Formula E event was cancelled after the MAUD decided not to honour the Host City Agreement signed in October 2023.
In his response to the memo, Arvind Kumar said that the tripartite agreement included a private promoter and was approved by the then-MAUD minister KT Rama Rao who had the requisite authority.
The senior IAS officer maintained that the intent to host the event was formalised in January 2022 and Rama Rao asked the MAUD to proceed with preparations due to deadlines. The ACB is expected to assess the complaint and make a decision on merit.