IAS Arvind Kumar, Special Chief Secretary in Telangana, has been summoned by the Anti-Corruption Bureau (ACB) on July 1 in connection with the Formula E race case.
The ACB is probing into alleged irregularities related to the Formula E Race, which was organised when BRS working president KT Rama Rao was the municipal administration and urban development minister.
A 1991 batch IAS officer, Arvind Kumar has been named as an accused in the FIR registered by the ACB, alongside former minister KT Rama Rao and retired HMDA engineer BLN Reddy.
The ED further questioned why RBI guidelines were not followed during the fund transfer and sought clarification on Arvind Kumar's interest in approving the payment from HMDA accounts without a proper agreement with the race organisers.
KT Rama Rao directed Arvind Kumar for fund transfer
Kumar had informed the state government earlier that he transferred the funds under the directions of the then minister, KT Rama Rao. Whereas, KTR said he took the decision to conduct the games, but procedural details have to be taken care of by officers.
In January, Arvind Kumar was questioned by the Enforcement Directorate (ED) regarding allegations of violations in the transfer of funds for conducting the Formula E race in Hyderabad. The agency is investigating whether there were any violations of the Foreign Exchange Management Act (FEMA) or if money was laundered through the transfer of funds to Formula E Operations (FEO).
RBI rules violated while transferring forex
The investigator asked about the bypassing of rules and regulations in transferring foreign currency from the Hyderabad Metropolitan Development Authority (HMDA) bank accounts. They also questioned why no approval was obtained from the state Cabinet or the Finance department to transfer funds.
Arvind Kumar, the then Municipal Administration department special chief secretary, reportedly told the ED that the then Municipal Administration and Urban Development (MAUD) minister KT Rama Rao instructed him to make the payment immediately, “as any disruption to the Formula E race would damage the state's brand image.”
The ED further questioned why RBI guidelines were not followed during the fund transfer and sought clarification on Arvind Kumar's interest in approving the payment from HMDA accounts without a proper agreement with the race organisers.
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