HMDA officials worry of ACB probe

Hyderabad:The government’s decision to book cases against former minister K.T. Rama Rao and top officials of HMDA has shivers down the spines of officials at the accounts and engineering wings of the city development authority.

Apart from Rama Rao, the Anti-Corruption Bureau (ACB) also booked cases against former MA&UD special chief secretary Arvind Kumar, who was also holding the charge of metropolitan commissioner, HMDA, and HMDA former chief engineer B.L.N. Reddy in connection with alleged irregularities in the Formula E-car race held in Hyderabad a year ago.

In addition to officials of HMDA, some officials working in Buddha Purnima Project Authority (BPPA), which originally constituted for the development of Hussainsagar Lake and its environs and Hyderabad Growth Corridor Limited (HGCL), are also concerned about the latest developments following the ACB case.

While the officials of the accounts department fear being held accountable for transferring funds or being questioned by ACB, those who used to report to the former chief engineer have also become a worried lot.

"They have already started consulting lawyers,” said an HMDA official, wondering why the employees who followed the instructions of their bosses suffer.

“Which official will dare to ask for a written instruction related to the execution of works or fund transfer when the process was personally monitored and executed by an officer of the Special Chief Secretary cadre and the minister,” he said.

“GHMC officials executed some works related to the e-car race. Will ACB question them also?” he added.

E-Car Case Timeline 

2022

Oct. 25: An agreement was entered into by the Formula E Operations (FEO) to organise E-Formula Season 9,10,11 and12 in Hyderabad

2023

Feb. 10: The first ever two-day e-car race held

Sept. 25: HMDA receives invoice raised by FEO for Rs 22.69 cr towards first installment of Season 10

Sept. 27: HMDA metropolitan commissioner and MAUD special chief secretary Arvind Kumar circulates file to then minister K.T. Rama Rao seeking approval to become promoter and host for season 10 and spend `110 crore towards fee and `50 crore for ancillary works

Sept. 29: HMDA receives another invoice for `23.01 crore towards second instalment

Oct. 9: Model Code of Conduct for the Assembly elections comes into force, making the Election Commission of India’s approval mandatory for fund release.

Oct. 11: HMDA transfers Rs 55 crore to FEO account in the United Kingdom

Oct. 27: FEO sends email to HMDA terminating the tripartite agreement entered into in Oct. 2022

Oct. 30: A new agreement was signed by FEO and MAUD according to which the state undertook not only responsibility of paying sponsor fee of `90 crore but also providing civic and logistic support for the e-car race including laying track

Dec. 7: The Congress government swears in under the leadership of A. Revanth Reddy

Grave Irregularities 

1. Then municipal administration and urban development minister K.T. Rama Rao and special secretary Arvind Kumar transferred `55 crore of public money to FEO when the old agreement was still in vogue and there was no obligation to make payment under the subsisting agreement. The payments were made in anticipation of the state becoming promoter under the new agreement that was entered into subsequently.

2. No prior approval was taken from the Election Commission of India to release the payments or enter into a new agreement

3. HMDA flouted the mandatory rule of obtaining the concurrence of the finance department for making payments above `10 crore.

4. Payments were made in foreign currency in violation of existing foreign exchange remittances rules and regulations.

5. The approval of the state Cabinet, a competent authority on behalf of the Governor, was not taken.