Hyderabad: In a significant development in the alleged financial irregularities linked to the 2024 Formula E race in Hyderabad, the Centre has granted sanction to prosecute senior IAS officer Arvind Kumar, removing a key procedural hurdle for investigators and clearing the path for the filing of a chargesheet in the case.
The approval was issued by the Department of Personnel and Training (DoPT), which is mandatory for initiating criminal prosecution against serving or former senior civil servants. Arvind Kumar, who has been named as Accused No. 2 in the case, served as the special chief secretary of the Municipal Administration and Urban Development (MAUD) department at the time of the event.
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The Anti-Corruption Bureau (ACB), which has been probing the matter, is now preparing to file a comprehensive chargesheet against all accused, including Bharat Rashtra Samithi (BRS) working president and former MAUD minister KT Rama Rao, who has been named as the prime accused. The Governor had earlier granted sanction for prosecuting Rama Rao, completing the legal prerequisites required before the case could proceed to court.
The case centres on alleged irregularities in the organisation of the second edition of the Formula E race held in Hyderabad in 2024. Investigators have alleged that approximately ₹55 crore was transferred from Hyderabad Metropolitan Development Authority (HMDA) accounts to foreign entities associated with Formula E operations without obtaining mandatory Cabinet approval and without following prescribed financial procedures.
According to officials familiar with the probe, the funds were routed directly to overseas accounts linked to the event’s commercial operations, bypassing established government norms governing public expenditure and foreign remittances. The ACB has also named HMDA chief engineer BLN Reddy as an accused in the case.
The agency has alleged that the financial decisions were taken in violation of institutional processes, including the requirement for Cabinet clearance for high-value commitments and adherence to departmental financial rules. The absence of these approvals forms the core of the prosecution’s case.
With prosecution sanctions now secured for both the political executive and the senior bureaucratic decision-maker, investigators said the chargesheet is likely to be filed shortly before a special court designated to hear corruption cases. The filing of the chargesheet will mark the formal commencement of criminal proceedings and could lead to summons being issued to the accused.
Officials indicated that documentary evidence, financial records, official correspondence and approval files form a substantial part of the case material. The ACB is also examining the decision-making chain within the MAUD department and HMDA to establish accountability for the alleged diversion of public funds.
The Formula E race, which had been promoted as a flagship global sporting event for Hyderabad, is now under scrutiny for alleged procedural lapses and financial irregularities. The probe has triggered political and administrative repercussions, given the involvement of senior officials and a prominent political leader.
Legal experts noted that prosecution sanction is often a decisive stage in corruption cases involving public servants, as it allows investigative agencies to move beyond preliminary inquiry and place evidence before the judiciary. With both sanctions in place, the matter is expected to shift from the investigative phase to judicial scrutiny.
The ACB has maintained that its investigation is based on financial trail analysis and official records, and that the court will ultimately determine culpability. The accused have previously denied wrongdoing and described the event as a legitimate international engagement aimed at promoting Hyderabad as a global destination.
The case is likely to remain in focus as it progresses through the courts, given its intersection of public finance, administrative accountability and political responsibility in the conduct of high-profile international events.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
