Deputy CM Mallu Bhatti Vikramarka said that the Formula E race in Hyderabad has proven to be a failure, resulting in a substantial budget loss of almost Rs 110 crore.
“This significant financial impact raises concerns about the justification for spending such a large sum solely for image boost,” he said.
Addressing the media, he said, “Additionally, there’s an issue with the Municipal Administration Special CS signing a file without the approval of the then Municipal
Minister. The government is contemplating legal action due to non compliance with the secretariat’s business rules.”
Reacting to KTR’s tweet on hurting Hyderabad’s brand image, Bhatti said that they had kept Telangana for sale and that then the State government did not get any income from Formula E race.
He asked why was Ace Next Gen which did the tripartite agreement removed and made into a bipartite agreement. Initially, a tripartite agreement was signed on October 25, 2022, involving the TS government, Ace Next Gen and Formula E.
As per the terms, the Hyderabad based Ace Next Gen was to conduct the event and sell tickets. Formula E was to organize the event and the State government was to lay roads
and develop other infrastructure spending Rs 20 crore. This apart, Rs 30 crore was spent by Hyderabad Racing Private Limited.
The Telangana government has served a memo to senior IAS officer Arvind Kumar for ‘serious violations’ regarding the Formula E race agreement.
The memo has been issued in connection with the conclusion of agreements with Formula E
Operations (FEO) for the conduct of Formula E racing events in Hyderabad.
The official has been asked to explain why the huge expenditure of Rs 46 crore plus a tax
of Rs 9 crore was paid from the Hyderabad Metropolitan Development Authority (HMDA) account 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.
The officer has been asked to explain within seven working days why suitable action
should not be initiated.
He was also asked to explain why a revised agreement with FEO was entered afresh for conducting the Season-10 event, again without the competent authority’s permission, that too when the Model Code of Conduct (MCC) announced by the Election Commission of India (ECl) was in force in the state.
He was also asked why the HMDA was designated as the nodal agency to host as well as
to conduct the event without approval from competent authorities
