Formula E bomb to explode!

The Formula E racing controversy is likely to be the bomb about to explode, with allegations of unauthorised fund transfers resurfacing.
Municipal authorities have raised concern over a Rs 55 crore payment made by the Hyderabad Metropolitan Development Authority (HMDA) to a foreign organisation, allegedly without approvals.
They have reportedly filed a complaint with the Anti-Corruption Bureau (ACB), demanding a thorough investigation. The ACB has reportedly requested the government’s permission to launch an investigation to find out whether any laws were broken during the allocation of public funds.
The incident began in February 2023 when the first-ever Formula E race was held in Hyderabad on a 2.8 km track around Hussain Sagar, marking the city’s debut in the global racing circuit.
After its success, plans were made to host another race on February 10, 2024, with the BRS admin entering into an agreement with Formula E Operations (FEO) in October 2023. The HMDA reportedly transferred Rs 55 crore to FEO to facilitate this, an action that is now under scrutiny.
Municipal officials said the funds were transferred without seeking approval from the finance department bypassing financial protocols. The unilateral decision to release funds without
cabinet consent has raised serious questions about transparency and due process.
Sources indicate that the funds were allegedly disbursed based on directives given over the phone by BRS Municipal Minister KT Rama Rao during his tenure.
After the Congress came to power in December 2023, FEO cancelled the 2024 race due to “non-compliance with government regulations.”
If the event had been held, the HMDA would have had to bear a burden of around Rs 200 crore. After the cancellation attention shifted to the nature of the fund transfers, sparking a political and administrative debate.
It may be mentioned here that in the past, the Chief Secretary issued notices to a senior IAS official involved in the decision. In his reply to the notice issued regarding the sanction of Rs 55 crore for the Formula E race, senior IAS officer Arvind Kumar said that KTR who was the competent authority then was kept informed at every stage of the agreement.
“It is clarified that the competent authority, that is, the minister handling MAUD, was kept informed at all stages and that permission was obtained from the competent authority. It is clarified that season 10 was not yet over and legal action against the then promoter would have been launched as per the law and it is open for the TG government to go ahead accordingly,” he told the CS in his reply to the memo.