Telangana government is understood to have decided to not lend any credence to the agreements entered into by then Special Chief Secretary Arvind Kumar with Formula E Organisation (M/s ABB Formula E) as they are conducted without any legal vetting as is the norm for any governmental contractual obligations.
The government, upon receipt of breach of understanding notice from the Formula E Organisation, conducted an elaborate study, including that of legal aspects involved in the case, to understand the crux of the situation. It has accordingly asserted that the government has never entered into any agreement with Formula E and has no legal obligations in this regard. The agreements were entered into by the then Special Chief Secretary without taking approval from the competent authority, the State Cabinet and not following Secretariat Business Rules.
“Article 299 of the Constitution provides that all contracts made in the exercise of executive power of the Union or of a State shall be expressed to be made by the President or by the Governor of the State.” The agreements relating to Formula E were not legally vetted by the State government’s Law department and no consent was obtained from the competent authority.
