Senior IAS officer Arvind Kumar. File | Photo credit: RAMAKRISHNA G
The Union government has reportedly sanctioned the Anti-Corruption Bureau (ACB) to prosecute senior IAS officer Arvind Kumar in connection with the Formula-E car racing case involving alleged embezzlement of ₹54.88 crore in public funds. However, the police have not yet officially announced this.
The ACB submitted its prosecution report to the state government on September 9, naming Bharat Rashtra Samithi labor president and former minister KT Ram Rao as the main accused. It also sought permission to prosecute the then special chief secretary in the municipal administration and urban development department Arvind Kumar and former Hyderabad Metropolitan Development Authority chief engineer BLN Reddy.
Earlier, Governor Jishnu Dev Varma had given approval to prosecute Mr. KT Rama Rao in the same case.
The case stems from a complaint filed on 18 October 2024 by M. Dana Kishore, Principal Secretary, Municipal Administration and Urban Development Department (MA&UD), alleging a loss of ₹54.88 crore to the exchequer. He alleged that the Hyderabad Metropolitan Development Authority released payments to Formula E Operations Limited without obtaining mandatory approval from the government or the finance department. The complaint was filed after the Congress assumed power in the state.
Based on the complaint, the ACB registered a case against Mr. KT Rama Rao, Mr. Arvind Kumar and Mr. BLN Reddy on December 19, 2024. According to the FIR, ₹45.7 crore was transferred to Formula E Operations Limited between September and October 2023, even after the company terminated its agreement with the Telangana government. Investigators said this transfer also resulted in an additional tax burden of ₹8.06 crore borne by HMDA.
The ACB further noted that the tripartite agreement signed in October 2022 between the Government of Telangana, FEO and event sponsor Ace Nxt Gen Pvt. Ltd., limited the financial liability of the government. However, following disputes between the event’s promoter and sponsor, the state allegedly assumed financial responsibility without the required regulatory approvals, resulting in a significant financial loss.
Published – 14 Feb 2026 20:41 IST