Hyderabad: Chief Secretary A Santi Kumari on Tuesday wrote to the director general of the Anti-Corruption Bureau (ACB) seeking an inquiry against BRS executive president KT Rama Rao in connection with alleged irregularities of Rs 55 crore in Sutra E. Car race to be held in Hyderabad during BRS regime in 2023, official sources said.
The state cabinet meeting on Monday directed the chief secretary to immediately write a letter to the director general of the ACB to investigate the Formula E race scam.
The state government received Governor Vishnu Dev Verma’s approval 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 before finally giving his approval on December 12.
Official sources said the CS has attached a letter of approval from the Governor seeking an inquiry against Rama Rao along with his letter to the ACB-DG.
After the governor’s approval, the state cabinet on Monday directed the CS to write to the ACB-DG to initiate an inquiry against Rama Rao.
The alleged Formula E scam relates to the high-profile Formula E race in Hyderabad, which was first organized in February 2023 at an investment of Rs 200 crore, backed by sponsors such as GreenCo and Hyderabad Racing Limited, when Rama Rao was serving as 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 contract with Formula E Operations (FEO) in October 2023 under the BRS regime, to host the season 10 races scheduled for February 2024. However, the state assembly was under an electoral model. Code of Conduct (MCC), the transaction bypassed necessary approvals from the Election Commission and the Finance Department.
Arvind Kumar has been accused of advancing Rs 55 crore from HMDA funds to the FEO for the Season 10 race in violation of HMDA and state government protocols. The Congress government canceled the program to be held in 2024 shortly after assuming office.
In January 2024, Chief Secretary A. Santi Kumari issued a memo to Arvind Kumar, highlighting these “serious violations” and demanding Rs. 55 crore seeking accountability for payment and procedural errors. In his explanation, Arvind Kumar reportedly clarified that he transferred the funds on the verbal instructions of then MAUD minister Rama Rao.
The replacement of GreenCo with HMDA as the primary financier for the February 2024 program raised further doubts. After the change of government in December 2023, the FEO backed out of the commitment, citing non-compliance with the conditions. Arvind Kumar, transferred to Revenue (Disaster Management) Department in December 2023 soon after Congress came to power.
The government has already given approval to the ACB to prosecute Arvind Kumar in the Formula E car race scam.