HYDERABAD: Former Municipal Administration department special chief secretary Arvind Kumar has reportedly informed the ACB that the decision to transfer Rs 55 crore to Formula-E Operations (FEO) was made by former minister KT Rama Rao.
The senior IAS officer, named Accused No. 2 (A-2) in the case, was grilled for nearly eight hours on Wednesday by the Anti-Corruption Bureau, which is investigating allegations of irregularities in conducting the Formula-E race.
A team from the ACB’s Central Investigation Unit reportedly questioned Arvind Kumar on various aspects, including who conceived the idea of hosting the race, who initiated contact with FEO, the major stakeholders in the event, the terms of the first phase of the agreement between the state government and FEO, the sponsors, and HMDA’s role in the event after the original sponsor - Greenko Group - backed out.
According to sources, when asked whose decision it was to transfer Rs 55 crore in foreign exchange to FEO, Arvind Kumar stated categorically that it was done on the orders of Rama Rao. “It was purely his decision,” he reportedly told the ACB.
Sources said that Arvind Kumar submitted screenshots of his conversation with Rama Rao, and the latter’s directive to him to release the funds.
Asked whether permission or approval was obtained from the Finance department or the Cabinet to transfer funds to foreign firms, Arvind Kumar reportedly replied that no such permission was obtained. He added that HMDA released the amount in its capacity as a sponsor for the Formula-E race.
ACB may summon Arvind again after questioning KTR, BLN Reddy
When asked why he, as principal secretary of the department, did not inform or explain to the minister the RBI norms required for transferring funds to foreign companies, Arvind Kumar reportedly explained that the minister’s instructions came after the then sponsor withdrew, forcing the HMDA to step in.
When questioned about the reason for the sponsor’s withdrawal, Arvind Kumar stated that he was unaware.
Sources disclosed that the ACB team also asked the senior IAS officer if HMDA had sponsored other events during his tenure as the head of MAUD. Arvind Kumar reportedly responded that the decision to sponsor the race was taken to enhance HMDA’s brand image.
The ACB recorded Arvind Kumar’s statement and obtained his signature on it. Sources revealed that the investigation officer informed the senior IAS officer that he would be notified about the next round of questioning.
It is likely that Arvind Kumar may be summoned again after the ACB questions Rama Rao and former HMDA chief engineer BLN Reddy in connection with the case.