Formula E Car Race Scam: CS Writes to ACB Seeking Probe Against KTR
Hyderabad: Chief Secretary A. Santhi Kumari on Tuesday wrote to the Director-General, Anti-Corruption Bureau (ACB) asking him to initiate a probe against BRS working president K.T. Rama Rao in connection with alleged irregularities amounting to Rs.55 crore in the Formula E car race held in Hyderabad during the BRS regime in 2023, official sources said.
The development follows the state Cabinet meeting held on Monday which directed the Chief Secretary to write a letter to ACB director general immediately seeking investigation into the Formula E race scam.
The state government secured Governor Bishnu Dev Varma's nod on December 12 to prosecute Rama Rao in the Formula E race scam. The state government sought the Governor's approval on November 8 but he kept his decision pending for over a month finally giving his nod on December 12.
Official sources said that the CS with her letter to ACB-DG enclosed the approval letter granted by the Governor while seeking investigation against Rama Rao.
Following the Governor's nod, the State Cabinet on Monday directed CS to write to the ACB-DG to initiate a probe against Rama Rao.
The alleged Formula E scam pertains to Hyderabad’s high-profile Formula E race, first held in February 2023 with an investment of `200 crore, backed by sponsors such as GreenCo and Hyderabad Racing Limited, when Rama Rao was serving as the minister for municipal administration and urban development (MAUD) and senior IAS officer Arvind Kumar was serving as special chief secretary, MAUD.
Following this inaugural event, MAUD signed a new agreement with Formula E Operations (FEO) in October 2023, during the BRS regime, to host a Season 10 race scheduled for February 2024. However, as the state was under the Assembly elections-related Model Code of Conduct (MCC), the transaction bypassed necessary approvals from the Election Commission and the finance department.
Arvind Kumar is accused of advancing Rs 55 crore from the HMDA funds to FEO for the Season 10 race without approval, in violation of HMDA and state government protocols. The Congress government canceled the planned 2024 event shortly after taking office.
In January 2024, Chief Secretary A. Santhi Kumari issued a memo to Arvind Kumar, highlighting these "serious violations" and seeking accountability for the Rs.55 crore payment and procedural lapses. In his explanation, Arvind Kumar reportedly made it clear that he transferred the funds on the oral instructions of then MAUD minister Rama Rao.
The replacement of GreenCo with HMDA as a primary financier for the February 2024 event further fuelled suspicions. Following the change in the government in December 2023, FEO withdrew from the commitment, citing non-compliance with terms. Arvind Kumar, was transferred to revenue (disaster management) department in December 2023 soon after the Congress came to power.
The government already granted approval to ACB to prosecute Arvind Kumar in Formula E car race scam.
