After Formula E last week announced the cancellation of Hyderabad E-Prix on February 10, the Telangana government issued a memo to IAS officer Arvind Kumar over several "serious violations" concerning the Formula E race agreement. The government has accused the officer, the then special chief secretary of the municipal administration and urban development department, of not following the due process of approval from the competent authority, and violation of Secretariat Business Rules, regarding the agreements with Formula E Operations (FEO) for the season 9 and season 10 events. While cancelling the fourth race of season 10, Formula E on January 5 cited a decision by the new government and Municipal Administration and Urban Development Department (MAUD) not to fulfil the host city agreement signed on 30 October 2023. “Formula E Operations (FEO) has been left with no choice other than to formally give notice to MAUD that it is in breach of contract. FEO is considering its position and what steps it may take under the Host City Agreement and applicable laws. All of FEO’s rights in that regard are reserved,” the ABB FIA Formula E World Championship said in an official statement. We have announced an update to the Season 10 calendar, with the cancellation of the Hyderabad E-Prix, scheduled for Saturday 10th February. — Formula E (@FIAFormulaE) January 5, 2024 In the memo to Arvind Kumar, dated January 6, the government asked him to explain in seven days as to why further action should not be initiated for the lapses on his part. Kumar, now special chief secretary to the revenue and disaster management department, has been asked to explain why Rs 46 crore plus the tax amount of Rs 9 crore was paid from the Hyderabad Metropolitan Development Authority's (HMDA) resources even before the agreement was signed and without obtaining the concurrence of the HMDA's board of directors as well as that of the Finance Department of the state government. The government has sought to know why the agreement for the conduct of season 10 was concluded without the knowledge or permission of the competent authority, and without exploring the possibilities of finding another private player as "promoter" replacing the defaulting firm of season 9. It asked why “the consequences of dropping of the "promoter" of the season-9 agreement were not properly examined, including its financial implications and necessary action not initiated to claim the damages from the defaulting "promoter".” The memo from the chief secretary also questioned why “due permission was not taken, and the issue was not brought to the notice of the competent authority, when the tripartite agreement was terminated by the Formula E Operations (FEO), allowing the promoter, who was at gross default go free from any liability, while the additional burden of conducting the event besides hosting the same was passed on to the government”. The memo also alleged that necessary due diligence was not done to safeguard the financial interests of the HMDA, in the wake of assumption of additional responsibilities as "promoter" and asked why. Further, it asked why a revised agreement with FEO was signed for the season-10 event without permission from the competent authority, that too, when the Model Code of Conduct (MCC) was enforced by the Election Commission of India (ECI). Arvind Kumar was not available for comment. While the cancellation of Hyderabad E-Prix was on the expected lines following a regime change, the decision was received with criticism by the former dispensation. Bharat Rashtra Samithi working president and former MAUD minister K T Rama Rao called the Congress government's decision “poor and regressive”. He posted on X: "This is truly a poor and regressive decision by the Congress government. Events like Hyderabad E-Prix enhance the brand image of our city and country across the world. We had put in a lot of effort and time to bring Formula E-Prix for the first time to India.” The city hosted the country's first electric car race on February 11, 2023, on the banks of Hussainsagar Lake, and was scheduled to conduct the international event for four consecutive years. Round 4 of the 2024 season will now be hosted by Brazil's Sao Paulo. Other host cities include Tokyo, Shanghai, Berlin, Monaco, Mexico City, Diriyah, Misano, Portland and London.
