Key development in Formula-E car race case

Hyderabad: A significant update has emerged in the Formula-E race controversy as the Anti-Corruption Bureau (ACB) moves forward with its investigation. The ACB has received directions from the High Court and has questioned the complainant, Dana Kishore, for over seven hours, recording his statement. Based on this statement, there are strong indications that former Minister K. T. Rama Rao (KTR) and IAS officer Arvind Kumar may soon be called for questioning.

Dana Kishore, the Chief Secretary of Municipal Administration, had filed a complaint regarding irregularities in the Formula-E race organized in Hyderabad. His statement plays a crucial role in the ongoing investigation, and the ACB is likely to issue notices to KTR and Arvind Kumar soon. There are also expectations that the ACB will present the documents Dana Kishore handed over to the authorities as part of the inquiry.

Dana Kishore’s complaint highlights several key issues. He stated that money was transferred from the Hyderabad Metropolitan Development Authority (HMDA) on the orders of then Minister KTR. The complaint involves allegations of irregularities in signing an agreement between the HMDA and the Formula-E Operations without the required permissions, as well as the illegal payment of ₹46 crore in foreign currency without clearance from the Reserve Bank of India (RBI).

The ACB has already registered a case based on the complaint. Along with KTR, the ACB has named Arvind Kumar, the then Special Chief Secretary of Municipal Administration, and BLN Reddy, the Chief Engineer of HMDA, in the case. The primary allegations center around the signing of an agreement between Formula-E Operations and S Next Gen to organize car races for the 9th, 10th, 11th, and 12th seasons. The first of these races was held in Hyderabad on February 10-11, 2023.

In his defense, Arvind Kumar, who was the head of the Municipal Administration department, confirmed that the MOU was signed with KTR's approval. However, the controversy arose when it was discovered that ₹55 crore was paid directly to the foreign company organizing the race, without seeking the approval of the HMDA Board, the Finance Department, or the RBI. Of this, ₹46 crore was allegedly paid in foreign currency, sparking concerns about financial mismanagement and possible violations of regulatory norms.

The ACB is now focusing on investigating whether there was any misuse of power or diversion of funds in the case. As part of the probe, the ACB will examine where the ₹55 crore paid to the Formula-E company ultimately ended up and whether it reached the intended recipient. If the investigation uncovers evidence of corruption or financial misconduct, arrests may follow, which could make the case even more sensational.

Former Minister KTR has already been named as the primary accused (A1) in the case, with Arvind Kumar (A2) and BLN Reddy (A3) also facing serious charges. The government’s actions have been spurred after Governor Jishnu Dev Verma gave permission for the ACB to investigate KTR’s involvement in the Formula-E race controversy. Following this, Chief Secretary Shanthi Kumari directed the ACB to proceed with the inquiry.

As the investigation progresses, all those connected to the case are expected to be questioned, and further developments may unfold in the coming days. The case is drawing considerable attention as it involves high-ranking officials and significant sums of public money.