Telangana Deputy Chief Minister Mallu Bhatti Vikramarka on Tuesday said 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.
He alleged that the Formula E race was conducted last year by the previous government to benefit a company and Hyderabad and Telangana were in no way benefited from it.
He told reporters that it was agreed to pay Rs 110 crores to the company and out of this Rs 55 crores were paid. The remaining amount was to be paid in two installments. ABB Formula E has issued notice to the state government for a third installment, he added.
Formula E on January 6 announced cancellation of the second Formula E race (Season 10) scheduled in Hyderabad for February 10.
The announcement was made after a decision by the Municipal Administration and Urban Development Department (MAUD) of the Telangana government not to fulfil the Host City Agreement signed on October 30, 2023.
Formula E Operations (FEO) said it was left with no choice other than to formally give notice to MAUD for breach of contract.
The state government has issued notice to senior IAS officer Arvind Kumar for ‘serious violations’ with regard to the agreement.
The official has been asked to explain why the huge financial expenditure of Rs 46 crores plus the tax amount of Rs 9 crores was paid from the Hyderabad Metropolitan Development Authority (HMDA) resources even before the agreement was signed.
According to the memo issued by Chief Secretary A. Santhi Kumari the amount was paid without obtaining the concurrence of the HMDA’s Board of Directors as well as that of the Finance Department of the State Government.
The officer has been asked to give an explanation in seven working days to why suitable further action should not be initiated for the lapses.
Arvind Kumar was then Special Chief Secretary, Municipal Administration and Urban Development. After the Congress party came to power last month, he was transferred and posted as Special Chief Secretary, Revenue.
The Deputy Chief Minister slammed former minister K. T. Rama Rao for his tweet that the Congress government’s decision will damage brand image. He alleged that the previous government bartered the state’s resources while the new government is trying to undo the damage.
“The state did not get any income from the race. Should we spend Rs.110 crore for them to come here and see,” he asked.
Vikramarka stated that another Rs 20 crores were spent for laying the track. Hyderabad Racing Limited spent Rs 35 crores.
He also mentioned that it was originally a tripartite agreement but AceNext Gen was removed and it was turned into a bipartite agreement.
“For the race, roads were blocked for 7-10 days. The company left after selling the tickets. What has the state got from it,” he asked.