The Union government has granted sanction to prosecute senior IAS officer Arvind Kumar in the Formula E race irregularities case, clearing the way for the Telangana Anti-Corruption Bureau (ACB) to file its chargesheet.
The Department of Personnel and Training (DoPT) reportedly conveyed its approval to the Telangana government after a request made more than three months ago. As an All-India Services officer, prosecution of Arvind Kumar required mandatory clearance from the Centre.
The case pertains to the alleged transfer of ₹54.88 crore of public funds to Formula E Operations (FEO) for the Hyderabad E-Prix, which had been scheduled for February 2024 but was later cancelled.
The ACB registered an FIR on December 19, 2024, naming three principal accused— BRS Working President and former minister KT Rama Rao (A-1), then Special Chief Secretary (Municipal Administration and Urban Development) Arvind Kumar (A-2), and former Hyderabad Metropolitan Development Authority (HMDA) chief engineer BLN Reddy (A-3).
According to the ACB, payments were released without Cabinet approval, proper financial sanctions, or adherence to constitutional provisions.
Investigators alleged that funds were transferred in foreign currency to Formula E Operations Ltd and associated entities, reportedly on oral instructions from then minister KTR to Arvind Kumar. The tripartite agreement signed in October 2023 has also been termed invalid by the probe agency.
In November 2025, Telangana Governor Jishnu Dev Varma granted sanction for the prosecution of KTR. With the Centre’s approval now in place for Arvind Kumar, the ACB is expected to file the chargesheet shortly against all accused, including private entities linked to the event.
The probe found that the HMDA released around ₹45 crore in foreign exchange along with additional domestic payments without following Reserve Bank of India guidelines or obtaining the required clearances. During questioning, Arvind Kumar reportedly stated that the decisions and payments were made following directions from then minister KTR.
The Formula E event had been promoted as a major international sports initiative under the previous BRS government but was eventually scrapped, resulting in a financial loss to the state exchequer.
KTR, however, has dismissed the case as “politically motivated,” maintaining that no wrongdoing occurred. He said the hosting of the Formula E race was a legitimate promotional activity and that payments were made transparently through official channels.
He added that he was ready to face any scrutiny, including a lie-detector test, and asserted, “The Anti-Corruption Bureau is investigating a case where there is no corruption.”
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