The Anti-Corruption Bureau (ACB) today subjected IAS officer Arvind Kumar to a rigorous six-hour interrogation in connection with the ongoing Formula E-race case. This marks the third time the former Municipal Administration and Urban Development (MA&UD) official has been summoned by the probing agency regarding alleged financial irregularities in the Formula E-Race deal.

ACB officials reportedly questioned Mr Kumar extensively on the role of former MA&UD minister KT Rama Rao in the transfer of funds to the Formula E-race company without obtaining due government approval. Sources indicate that the IAS officer arrived at the ACB headquarters at 11:40 AM and departed around 5:15 PM, with the questioning session punctuated by a 30-minute lunch break and two tea breaks. Mr Kumar was reportedly pressed on allegations raised by complainant Principal Secretary M Dana Kishore, particularly concerning his involvement in transferring funds overseas.

The ACB registered a First Information Report (FIR) against KTR on 19 December last year. The FIR also named Aravind Kumar, then Special Chief Secretary to Government, Municipal Administration and Urban Development (MA&UD) department, and B L N Reddy, then Chief Engineer of Hyderabad Metropolitan Development Authority (HMDA).

The complainant alleges that the Hyderabad Metropolitan Development Authority (HMDA) made payments exceeding Rs 54.88 crore to Formula-E Operations Limited (FEO) and associated entities, bypassing standard financial protocols. According to the FIR, Rs 45.7 crore was transferred to FEO between September and October 2023, despite FEO having already terminated its agreement with the Telangana government. This payment reportedly incurred an additional tax burden of Rs 8.06 crore, which was absorbed by the HMDA.

A tripartite agreement signed in October 2022 between the Telangana government, FEO, and event sponsor Ace Nxt Gen Pvt Ltd had initially limited the State government’s financial responsibility. However, the FIR claims that disputes between FEO and Ace Nxt Gen Pvt Ltd led to the government assuming financial liability without necessary regulatory approvals, thereby causing significant losses to the exchequer.