Hyderabad E-prix: No benefit to State, says Bhatti

The Hyderabad E-prix Formula E race was scheduled to be conducted on February 10 this year but the agency cancelled the event, alleging a breach of contract by the government

Hyderabad: The Hyderabad E-Prix did not benefit the State government in any way benefit, according to Deputy Chief Minister Bhatti Vikramarka Mallu, who said legal measures would be initiated for taking action on those who ‘violated business rules’, besides recovering the money paid to the different agencies involved in the event.

The Hyderabad E-prix Formula E race was scheduled to be conducted on February 10 this year but the agency cancelled the event, alleging a breach of contract by the government. The Bharat Rashtra Samithi (BRS) had criticized the Congress government in failing to conduct the event, which made Hyderabad gain global recognition.

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However, the Deputy Chief Minister, speaking to the media here on Tuesday, defended the State government’s decision not to permit the event and alleged that the entire event was plagued with issues and that the State government did not get any benefit by hosting the race. Initially, a tripartite agreement was signed on October 25, 2022, involving the State government, Ace Next Gen and Formula E. As per the terms, the Hyderabad-based Ace Next Gen was to conduct the event and sell tickets, Formula E was to organize the event and the State government was to lay roads and develop other infrastructure spending Rs.20 crore. This apart, Rs.30 crore was spent by Hyderabad Racing Private Limited, Bhatti Vikramarka said.

Ace Next Gen sold the tickets and conducted one event. However, it left midway without conducting three races. The tripartite agreement was later converted into a bi-party agreement on October 30, 2023, he said.

The past government had violated business rules and signed the documents for payment of Rs.110 crore to Formula E. This apart, the State government was entrusted with the task of securing 80 permissions for conducting the races, besides imposing traffic diversions during the event, he said.

In the second agreement signed on October 30, 2023, Ace Next Gen left the task to conduct the races on the State government, the Deputy Chief Minister said.

“Interestingly, the MAUD Special Chief Secretary signed the documents following oral instructions. There was neither a cabinet approval nor former MAUD Minister KT Rama Rao’s signature,” Bhatti Vikramarka said, adding that Rs.55 crore was paid as first installment. The Formula E issued a notice demanding payment for Rs.55 crore towards the second installment. The State government would reply to their notices, he said.

Memo issued to Arvind Kumar

On Monday, the State government issued a memo to former MAUD Special Chief Secretary Arvind Kumar seeking an explanation over permissions granted and payments for organizing the race. It also sought details as to why the government’s financial interests were not safeguarded.