Centre gives nod for prosecution of IAS officer Arvind Kumar in Formula-E case

The Union government has reportedly granted sanction to the Anti-Corruption Bureau (ACB) to prosecute senior IAS officer Arvind Kumar in connection with the Formula-E car race case, which involves alleged misappropriation of ₹54.88 crore public funds. However, the police officials are yet to officially announce this.

The ACB had submitted its prosecution report to the State government on September 9, naming Bharat Rashtra Samithi working president and former minister K. T. Rama Rao as prime accused. It also sought permission to prosecute the then Special Chief Secretary in the Municipal Administration and Urban Development department Arvind Kumar and former Hyderabad Metropolitan Development Authority chief engineer B. L. N. Reddy.

Earlier, Governor Jishnu Dev Varma had granted approval for prosecution of Mr. K. T. Rama Rao in the same case.

The case originates from a complaint filed on October 18, 2024 by Principal Secretary of the Municipal Administration and Urban Development (MA&UD) department M. Dana Kishore, who alleged a loss of ₹54.88 crore to the State exchequer. He claimed that the Hyderabad Metropolitan Development Authority released payments to Formula E Operations Limited without obtaining mandatory approvals from the Cabinet or the Finance department. The complaint was filed after the Congress assumed power in the State.

Based on the complaint, the ACB registered a case on December 19, 2024 against Mr. K. T. Rama Rao, Mr. Arvind Kumar and Mr. B. L. N. Reddy. According to the FIR, ₹45.7 crore was transferred to Formula E Operations Limited between September and October 2023, even after the company had terminated its agreement with the Telangana government. Investigators stated that this transfer also resulted in an additional tax burden of ₹8.06 crore, which was borne by the HMDA.

The ACB further noted that the tripartite agreement signed in October 2022 between the Telangana government, FEO, and event sponsor Ace Nxt Gen Pvt. Ltd., had capped the government’s financial liability. However, following disputes between the promoter and the event sponsor, the State allegedly assumed financial responsibility without requisite regulatory approvals, leading to significant financial loss.