The Congress government in Hyderabad is considering charging former special chief secretary Arvind Kumar and former minister K T Rama Rao with embezzlement of Rs 55 crore in the Formula E company deal. The government wants to recover the money from them.
Arvind Kumar allegedly took the money from the state exchequer without the consent of the state Cabinet and Finance wing to give it to the Formula E company.
After receiving a reply from Arvind Kumar, the government is seeking legal opinion from experts and the state Advocate General. They want to take action against the officials and others responsible.
Arvind Kumar explained in his reply that he released the money to the Formula E company based on oral instructions from then Minister KT Rama Rao.
The government is taking this reply seriously and plans to take action accordingly. They argue that the agreement is not legally valid, giving them the right to demand a refund from the officials and the responsible minister.
The government is also looking for precedents where money was recovered from officials or ministers for entering into agreements without Cabinet approval. Officials say that releasing money without financial concurrence is a criminal offense.
Arvind Kumar has been transferred to the Revenue and Disaster Management department after the Congress came to power in the state.
