Formula-E Case: Senior IAS Officer Appears Before ACB

Hyderabad: Arvind Kumar, Senior IAS Officer, Appears Before ACB in Formula-E Race Case

Special Chief Secretary of the Telangana government, Arvind Kumar, appeared before the Anti-Corruption Bureau (ACB) on Wednesday in connection with the alleged financial irregularities surrounding the Formula-E race held in Hyderabad in 2023. The senior IAS officer arrived at the ACB headquarters in Banjara Hills around 10 a.m.

The ACB is investigating the transfer of Rs 54.88 crore to Formula-E Operations Limited (FEO) and is expected to question Arvind Kumar about his role in the payments. As the then Special Chief Secretary of the Municipal Administration and Urban Development Department, Kumar, who is the second accused in the case, was instrumental in facilitating the payments from the Hyderabad Metropolitan Development Authority (HMDA) to the UK-based FEO.

The ACB is likely to record his statement, as Kumar was issued a memo in January last year by the state government for entering into an agreement to host the Formula-E race while the Model Code of Conduct was in force. In his response, the senior official reportedly stated that he authorized the money transfer based on the directions of the then Minister for Municipal Administration and Urban Development (KTR).

The ACB filed a First Information Report (FIR) against KTR, Arvind Kumar, and former HMDA Chief Engineer B.L.N. Reddy for alleged financial irregularities related to the payment made by HMDA to FEO and other associated entities without following proper financial procedures. The FIR includes charges under Sections 13 (1)(A) and 13 (2) of the Prevention of Corruption Act, and Sections 409 and 120 (B) of the Indian Penal Code.

On January 6, the ACB summoned KTR, but he returned from the ACB office after his lawyer was not allowed to be present during the questioning. The ACB issued a second notice, asking KTR to appear on January 9. On January 7, the Telangana High Court dismissed KTR's petition to quash the FIR and also refused to prevent his arrest. KTR has since filed an appeal with the Supreme Court.

Meanwhile, B.L.N. Reddy, former Chief Engineer of HMDA, appeared before the Enforcement Directorate (ED) in the same case. The ED is investigating possible violations under the Prevention of Money Laundering Act (PMLA) based on the FIR filed by the ACB. The Central agency is also looking into potential violations of the Foreign Exchange Management Act (FEMA).

On Tuesday, the ED issued a fresh notice to KTR to appear before it on January 16 after he failed to show up for questioning. Arvind Kumar is scheduled to appear before the ED on January 9. Both Kumar and Reddy had previously sought more time to appear before the ED when notices were issued in early January.