The state government has issued notices to a senior IAS officer Arvind Kumar for releasing funds contrary to the provisions of the Election Code without government approvals. It has ordered to file a report within a week on the charges of releasing Rs 54 crores without the approval of the Cabinet.
The official has been asked to explain why the huge financial expenditure of Rs 54Cr was paid from the Hyderabad Metropolitan Development Authority resources even before the agreement was signed.
The state government believes that Arvind Kumar, who acted as HMDA commissioner, committed violations by releasing funds against the rules.
Funds for this racing project were released without the permission of the Election Commission on October 30, 2023 after the Election Code came into force in the state. The issue of HMDA entering into an agreement to organize Formula-E race competitions in Hyderabad without the approval of the Cabinet and without the approvals of the Finance Department has become a topic of discussion, even though strict rules have to be followed on the release of funds for new projects.
For conducting competitions Rs 54 crores paid in advance. The state government focused on the matter after the Federation of International Automobiles (SIA) announced that it would issue legal notices to the municipal department for violating the agreement of not giving prior notices and canceling the race. In this order, the issue of release of funds came to light.