Formula-E Case: Senior IAS Officer Arvind Kumar Appears Before ACB in Financial Irregularity Investigation

Hyderabad: In a significant development in the Formula-E race financial irregularity case, Arvind Kumar, the Special Chief Secretary of Telangana, appeared before the Anti-Corruption Bureau (ACB) on January 8, 2025.

Kumar’s questioning revolves around the alleged mismanagement of funds during the Hyderabad Formula-E event in 2023, where an amount of Rs 54.88 crore was transferred to Formula-E Operations Limited (FEO) without following the proper financial procedures.

Formula-E Race Controversy: The Role of Arvind Kumar

Arvind Kumar, who served as the Special Chief Secretary for the Municipal Administration and Urban Development Department, is the second accused in the case. As part of his duties, Kumar oversaw payments made by the Hyderabad Metropolitan Development Authority (HMDA) to the UK-based Formula-E Operations Limited. The ACB’s investigation aims to uncover potential financial irregularities related to the event and to understand whether proper protocol was followed in transferring such a large sum.

Kumar arrived at the ACB headquarters in Banjara Hills at 10 a.m. on January 8 for questioning, as the agency probes the alleged misconduct. Reports suggest that the ACB is focused on the transfer of Rs 54.88 crore to FEO, with Kumar having played a pivotal role in authorizing the payment during his tenure. According to Kumar’s defense, the payment was made under the directions of K.T. Rama Rao (KTR), the then Minister for Municipal Administration and Urban Development Department.

FIR Against Key Telangana Officials

An FIR was registered by the ACB against several key officials, including KTR, Arvind Kumar, and B.L.N. Reddy, the former Chief Engineer of HMDA. The ACB has charged them with alleged violations under Sections 13(1)(A), 13(2) of the Prevention of Corruption Act, along with Sections 409 and 120(B) of the Indian Penal Code for the illegal transfer of funds and lack of adherence to financial protocols.

The ACB’s investigation into the Formula-E financial dealings has attracted significant attention, especially considering the involvement of prominent political figures. The Telangana High Court recently dismissed KTR’s petition to quash the FIR, and the ACB has issued additional summons to him, requiring his presence for questioning on January 9.

Also Read | Telangana High Court Dismisses KTR’s Quash Petition in Formula-E Case

Enforcement Directorate Joins the Probe

The Enforcement Directorate (ED) has also entered the investigation, focusing on potential violations under the Prevention of Money Laundering Act (PMLA) and the Foreign Exchange Management Act (FEMA). Former HMDA Chief Engineer B.L.N. Reddy has already appeared before the ED for questioning, and Arvind Kumar is scheduled to appear before the agency on January 9.

The ED issued a notice to KTR, instructing him to present himself on January 16, following his failure to appear for questioning earlier. KTR had requested more time to attend to the agency’s inquiry, but the ED is determined to continue its investigation into the alleged corruption surrounding the Formula-E race event.

Political and Legal Implications of the Formula-E Case

The Formula-E race case has become a point of political contention in Telangana. Observers suggest that the case could have lasting political ramifications for Chief Minister K. Chandrashekhar Rao’s government, particularly as the state gears up for upcoming elections in 2026. Opposition parties have seized the opportunity to highlight the alleged irregularities in handling state funds, with the BRS party facing pressure from both the legal and political fronts.

As the investigation progresses, all eyes are on whether the ACB and ED will uncover more details of the alleged corruption and how these revelations could impact Telangana’s political landscape