Congress allegations on Formula-E Race undermined as SC backs PPP model setting aside Madras HC directions

The Supreme Court observed that PPP modes were being adopted by governments across the world and that such deals were being done considering different factors, including resources of the State

Hyderabad: As the Congress government in Telangana is digging holes and raking up controversies over the conduct of Formula-e race, other State governments are holding such events under Public Private Partnership (PPP) mode and building an image for themselves. Furthermore, Supreme Court has also now backed the conduct of such events under PPP mode.

The Tamil Nadu Government conducted Formula 4 race event in September last. A Memorandum of Understanding was signed by Sports Development Authority of Tamil Nadu (SDAT) and Racing Promotion Private Limited (RPPL) in August 2023 for a period of three years. As per the terms and conditions, RPPL was to spend Rs. 202 crore and SDAT would spend Rs 42 crore towards license and operations fee and other expenditure.

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However, due to a few issues a case was filed in Madras High Court, which issued four directions.

Setting aside these four directions, the Supreme Court in a judgement on Thursday, observed that PPP modes were being adopted by governments across the world. Such deals were being done considering different factors, including limited resources of the State, besides inefficiency and expertise.

Interestingly, the then Telangana government had organized the Formula-e race in February 2023 on the similar lines. The state capital became India’s first city to host such an event and with an objective of promoting EVs and making the city a hub for sustainable development.

The event drew international attention and as per Nielsen report Rs.700 crore revenue was generated directly and indirectly for the Telangana government. On the contrary, the Congress government accused former Municipal Administration Minister KT Rama Rao of corruption in organizing the event. The Government alleged that Rs 55 crore had been paid by the HMDA to the organiser.

It had also alleged that there was a poll code violation and procedural lapses resulting financial burden on the State. The Anti Corruption Bureau (ACB) had filed a case against the former Minister, besides the then Special Chief Secretary Arvind Kumar and other officials. However, KT Rama Rao has been arguing that the corruption charges were politically motivated as countering the Congress government’s charges.