Arvind Kumar, a 1991 batch IAS from Telangana has been served a memo seeking clarification for entering into an agreement for conducting the Formula E racing event while the Model Code of Conduct (MCC) was in force.
Kumar, who is now special chief secretary to the revenue and disaster management department, was special chief secretary of the Municipal Administration & Urban Development (MAUD) department when the agreement was signed.
The government will also move court in this case. Telangana Deputy Chief Minister Mallu Bhatti Vikramarka that Telangana did not get any benefit from Formula E race held last year, saying that the government will proceed legally on the agreement signed without approval as per Secretariat Business Rules.
The government has asked to submit his explanation within seven days why suitable action should not be initiated for the lapses. The government has alleged that Arvind Kumar has not sought any formal approval from government before signing the agreement. He concluded the agreement on October 30, when model code of conduct was in force due to assembly elections in Telangana.
Why memo was issued?
The memo was issued a day after Formula E announced cancellation of the Hyderabad E-Prix car race scheduled to be held on February 10, alleging that the new government in Telangana had resorted to breach of the host city agreement contract. It also threatened to serve a notice to the MAUD for breach of contract.
What government sought from Arvind Kumar?
In a memo issued by chief secretary Santhi Kumari, the government has questioned as to why he (Arvind Kumar)released Rs 55 crore, including Rs 9 crore towards tax, from the account of Hyderabad Metropolitan Development Authority (HMDA) even before the agreement was signed and without obtaining the concurrence of the HMDA's board of directors as well as that of the state finance department.
The government has also asked Arvind Kumar why he had entered into the tripartite long form agreement with Formula-E Operations (FEO) and a private organiser, without taking approval from the government in violation of Secretariat Business Rules.
The memo asked Arvind Kumar as to why he had not properly examined the consequences of dropping the promoter of the Hyderabad race, including its financial implications and initiated necessary action to claim the damages from the defaulting promoter.
What is Formula E
The 2023–24 ABB FIA Formula E World Championship is due to be the tenth season of the FIA Formula Echampionship, a motor racing championship for electrically powered vehicles recognised by motorsport's governing body, FIA as the highest class of competition for electric open-wheel racing car.
This year they were scheduled to organise car racing at 17 places across the world including Hyderabad. However the new government in Telangana has pulled out from being the host.
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