Senior IAS Officer Testifies Before ACB in Formula-E Investigation

Hyderabad, Jan 8 (NationPress) The Special Chief Secretary of the Telangana government, Arvind Kumar, attended a session with the Anti-Corruption Bureau (ACB) concerning the Formula-E race case on Wednesday.

The senior Indian Administrative Service (IAS) officer arrived at the ACB headquarters located in Banjara Hills around 10 a.m.

The ACB is currently investigating suspected financial misconduct linked to the organization of the Formula-E race in Hyderabad in 2023 and is expected to question the official regarding the transfer of Rs 54.88 crore to Formula-E Operations Limited (FEO).

As the former Special Chief Secretary of the Municipal Administration and Urban Development Department, Arvind Kumar, who is the second accused in this case, was instrumental in the payments made to the UK-based FEO from the Hyderabad Metropolitan Development Authority (HMDA).

The ACB is likely to document Arvind Kumar’s statement, especially since he received a memo from the state government in January of the previous year, requesting clarification about entering into an agreement for the Formula-E race while the Model Code of Conduct was active.

In his response to the memo, the senior IAS official reportedly indicated that he had authorized the transfer of funds based on the directives of the then Minister for the Municipal Administration and Urban Development Department, KTR.

The ACB has filed a First Information Report (FIR) against KTR, Arvind Kumar, and former Chief Engineer of HMDA B.L.N. Reddy for alleged irregularities in the financial transactions made by HMDA to FEO and related parties, bypassing standard financial protocols.

The FIR has been lodged under Sections 13 (1) (A) and 13 (2) of the Prevention of Corruption Act, in addition to Sections 409 and 120 (B) of the Indian Penal Code. The ACB had summoned KTR on January 6; however, he left the ACB office after his attorney was not permitted to be present during the interrogation.

Another notice was issued to him on the same day, instructing him to return on January 9.

The Telangana High Court dismissed KTR’s petition to nullify the FIR on January 7. The court also declined to issue directives preventing the ACB from detaining him. The BRS working president has since appealed to the Supreme Court.

In the meantime, former HMDA Chief Engineer B.L.N. Reddy has appeared before the Enforcement Directorate (ED) as part of the same investigation. The ED is looking into the matter under the Prevention of Money Laundering Act (PMLA) based on the FIR filed by the ACB.

The central agency is also examining potential violations of the Foreign Exchange Management Act (FEMA).

On Tuesday, the ED issued a new notice to KTR, asking him to appear on January 16, after he missed the earlier appointment. The BRS leader had requested additional time to meet with the agency.

Arvind Kumar is scheduled to appear before the ED on January 9. Previously, the ED had notified B.L.N. Reddy and Arvind Kumar to show up on January 2 and 3 respectively, but both had requested extensions.