Centre Grants Sanction to Prosecute IAS Officer in Formula E Case
In a significant development in the ongoing investigation into alleged financial irregularities surrounding the Formula E race in Hyderabad, the Telangana police have confirmed that the central government has cleared the crucial prosecution sanction against senior IAS officer Arvind Kumar. This procedural green light from the Department of Personnel and Training (DoPT) now enables the Anti-Corruption Bureau (ACB) to formally file a chargesheet against the former special chief secretary for municipal administration and urban development.
Three-Month Wait Concludes with Oral Confirmation
After an extensive wait of nearly three and a half months following their initial request to the DoPT, senior Telangana police officials announced on Saturday that they had received information indicating the sanction had been granted. While the official written communication is anticipated to arrive early next week, sources within the ACB revealed that an oral confirmation has already been received. Authorities expect the formal written order to be delivered on either Monday or Tuesday, marking the final procedural hurdle before legal proceedings can advance.
Details of the Alleged Financial Irregularities
The case, which was officially registered in December 2024 based on a complaint by then principal secretary M Dana Kishore, centers on the alleged unauthorized transfer of Rs 55 crore to UK-based Formula E Operations (FEO) in 2023. The funds were purportedly transferred to facilitate state government sponsorship of the second edition of the Formula E race in Hyderabad, following the withdrawal of the original sponsor, Hyderabad-based Ace Nxt Gen, after the first edition.
Investigators allege that the transfer violated established governmental procedures. The complaint specifically implicates that former MA&UD minister KT Rama Rao (KTR) instructed Arvind Kumar to initiate the file movement that enabled the state government to assume sponsorship responsibilities for the event.
Prosecution Sanctions Against All Three Accused Now Secured
With the Centre's sanction for Arvind Kumar, the ACB has now obtained the necessary prosecution approvals for all three primary accused in this high-profile case:
- KT Rama Rao: Prosecution sanction against the former minister was secured from the Governor in November 2025.
- BLN Reddy: The former Hyderabad Metropolitan Development Authority chief engineer received prosecution sanction from the Chief Secretary.
- Arvind Kumar: As an All-India Services officer, his prosecution required specific sanction from the DoPT, which has now been granted.
This comprehensive clearance allows investigators to proceed uniformly against all individuals implicated in the alleged irregularities.
Extensive Investigation and Questioning Conducted
The ACB has conducted thorough interrogations as part of their investigation. Former minister KTR was questioned twice last year, while BLN Reddy faced interrogation in January 2025. Arvind Kumar himself underwent an extensive six-hour questioning session in July of last year, specifically addressing his alleged involvement in authorizing the fund transfer to FEO.
Once the written sanction order is formally received from the DoPT, the ACB is expected to promptly proceed with filing the chargesheet, bringing this complex investigation closer to its judicial phase. The case highlights ongoing scrutiny of governmental procedures and financial oversight in major event sponsorships.
