IAS officer served memo for inking pact on Formula E race during Telangana polls
The memo was issued by chief secretary Santhi Kumari on January 6, a day after Formula E announced cancellation of the Hyderabad E-Prix car race
The Telangana government has issued a memo seeking explanation from senior Indian Administrative Service (IAS) officer Arvind Kumar for entering into an agreement for conducting the Formula E racing event while the Model Code of Conduct (MCC) was in force, during his stint as the special chief secretary of the Municipal Administration & Urban Development department, people familiar with the matter said on Tuesday.
The government also sought an explanation from Kumar, who is currently special chief secretary (disaster management), on why he released ₹55 crore, including ₹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 memo was issued by chief secretary Santhi Kumari on January 6, 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.
In the memo, which came to light on Tuesday and was reviewed by HT, the chief secretary 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.
She also sought to know why the special chief secretary had not brought to the notice of the government, when the FEO had terminated the tripartite agreement allowing the promoter, who was at gross default go free from any liability, while the additional burden of conducting the event besides hosting the same was passed on to the government.
It said Arvind Kumar 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.
Santhi Kumari asked the IAS officer why a revised agreement for the Hyderabad-E Prix car race was concluded again with FEO without permission of the government and without exploring the possibilities of finding another private player as “promoter” replacing the defaulting firm.
She said the revised contract was signed on October 30, when the model code of conduct (MCC) announced by the Election Commission of India (ECI) was in force in the state following announcement of schedule for assembly elections in the state.
She sought to know why the HMDA was designated as nodal agency to host as well as to conduct the event, without following the due process of approval from the government as required under Secretariat Business Rules.
“Huge amount of ₹46 crores plus the tax amount of ₹9 crore was paid from the HMDA resources, even before the agreement was signed and without obtaining the concurrence of the HMDA Board of Directors as well as that of state finance department,” the chief secretary pointed out in the memo.
Stating that a formal consent from the government was not taken when a major policy decision involving huge financial commitment for conduct of the Formula E event as well as the commitment to conduct the event for next 2 Seasons was made, Santhi Kumar asked Arvind Kumar to submit his explanation within seven days why suitable action should not be initiated for the lapses.
Arvind Kumar could not be reached for comment.
