The Enforcement Directorate (ED) has summoned Special Chief Secretary Mr. Arvind Kumar (1991-batch IAS officer) and former Chief Engineer (CE) of the Hyderabad Metropolitan Development Authority (HMDA), Mr. BLN Reddy, to appear on January 8 and 9, respectively. The two officials had earlier sought 2-3 weeks after being initially asked to appear on January 2 and 3.
“They have now been asked to appear on 8 and 9 January, respectively,” a senior official confirmed. The summons are in connection with alleged financial irregularities during the Hyderabad Formula E race in February 2023.
Additionally, Bharat Rashtra Samithi (BRS) working president and former IT minister Mr. K.T. Rama Rao has been summoned by the ED and is scheduled to appear on January 7.
The investigation stems from an FIR filed by the Anti-Corruption Bureau (ACB) on December 19, 2024, based on a complaint by Principal Secretary Mr. M. Dana Kishore (1996-batch IAS officer). The FIR alleges financial irregularities exceeding Rs. 54.88 crore in payments made by HMDA to Formula-E Operations Limited (FEO) and associated entities without following established financial protocols.
Between September and October 2023, Rs. 45.7 crore was reportedly transferred to FEO despite terminating its agreement with the Telangana government during the same period. This amount incurred an additional tax liability of Rs. 8.06 crore, borne by HMDA.
The FIR further highlights disputes between FEO and event sponsor Ace Nxt Gen Pvt. Ltd., which allegedly led the Telangana government to assume financial liability without proper regulatory approvals, causing losses to the exchequer.
The ED’s investigation into fund flows and procedural violations has heightened public scrutiny, particularly with the involvement of senior officials and political leaders.
