Telangana State government has, through a memo, sought an explanation from the Special Chief Secretary, Revenue (Disaster Management) Arvind Kumar for entering into an agreement for conducting the Formula E racing event while the Model Code of Conduct (MCC) was in force, during his stint as the Special Chief Secretary of the Municipal Administration & Urban Development department.
Among a host of charges, the memo issued by Chief Secretary A. Santhi Kumari sought an explanation as to why a revised agreement with the Formula E Operations (FEO) was entered a second time for conducting Season 10 this year during the Model Code, and why the Hyderabad Metropolitan Development Authority (HMDA) was designated as the nodal agency for the event, without permission of the competent authority as designated by the Secretariat Business Rules.
Citing Article 299 of the Constitution of India, which stipulates that all contracts made in exercise of the executive power of the State or union governments be expressed to be made by the President or the Governor, the memo asked why formal consent was not taken from the aforesaid authorities for matter involving Rs. 55 crore expenditure (Rs. 46 crore plus Rs. 9 crore taxes) from the HMDA resources and why the amount was paid even before the agreement was signed without obtaining the concurrence of the HMDA’s Board of Directors or the State Finance department.
The memo also questioned the tripartite long-form agreement with Formula E Operations, which is a private organiser, without following the due process of approvals, and why the issue was not brought to the notice of the competent authority when the tripartite agreement was terminated by the FEO in Season 9, allowing the promoter go free from their liabilities, leaving the burden of conducting the event to the government.
The promoter was let go without any heed to the financial implications, while no action was initiated to claim damages from the defaulting promoter, the charges read. Also questioned was the decision on behalf of HMDA to assume the additional responsibilities as the promoter for Season 10 without due diligence to safeguard the financial interests of HMDA and government.
Cancellation of the Formula E racing event this year has created a furore, with the former MA&UD minister K.T.Rama Rao terming it a “poor and regressive decision”.
