Telangana Government has decided to proceed legally to recover the amounts paid to Formula E Organisers and initiate stringent action against those who facilitated the payment of money to the company in gross violation of Secretariat Business Rules.
The Government will verify the legal validity of the agreement entered into by the previous Government with the company and proceed accordingly. “There is no validity as the agreement is entered into in violation of Secretariat Business Rules without informing the competent authority,” Deputy Chief Minister Mallu Bhatti Vikramarka said.
He explained that the Formula E Organisers, a private firm Ace Nxt Gen and the previous Government entered into a tripartite agreement on October 26, 2022. According to the agreement, Ace Nxt Gen would raise resources through the sale of tickets and make payments to Formula E Organisers.
Another agreement was entered into on October 30 last year when the Model Code of Conduct was in force and senior IAS official Arvind Kumar went ahead to make an advance payment of Rs. 55 crore to the promoters. This was in addition to claims of Rs. 20 crore incurred as track expenditure and Rs. 35 crore by Hyderabad Racing for organising the race.
The State Government being the third party would not get any benefits from the deal. In fact, it had to incur expenditure in terms of developing infrastructure besides obtaining around 80 permissions from the State/Central Governments for the conduct of the race. He was responding to the charge of former Minister K.T. Rama Rao that the brand image of the State had suffered huge dent with the Congress Government’s action.
“What public interest is served by organising such a race? A private agency will garner revenue generated through the tickets while the Formula E Organisers serve a notice on the Government for payment of the remaining Rs. 55 crore,” he said. Thew Deputy Chief Minister dismissed Mr. Rama Rao’s claims that the conduct of the Formula E race had helped the State attract huge investments and business. “Where is the industry? It should be visible if the development is real. You cannot hide such developments,” he said.
He advised the Bharat Rashtra Samithi (BRS) leaders to stop their “false propaganda” against the Congress Government that came to power just a month ago. The previous BRS Government indulged in “economic atrocities” to serve the interests of a select people, he said, adding that the details of the promoters of Ace Nxt Gen would be revealed soon.
