Formula E alleges breach of contract by govt, cancels Hyderabad E-Prix

Formula E has announced the cancellation of the Hyderabad E-Prix alleging a contract breach by the new Telangana government on Saturday.

Formula E has alleged a breach of contract by the Municipal Administration and Urban Development Department (MAUD) that falls under the control of the Telangana government.

In a statement, Formula E said, " The cancellation comes following a decision by the Municipal Administration and Urban Development Department (MAUD), under the control of the Government of Telangana, not to fulfill the Host City Agreement signed on 30 October 2023."

The inaugural electric race in the country was held in February last year with Telangana's then IT Minister KT Rama Rao playing a huge role in bringing the race to Hyderabad.

However, KTR's BRS party lost the state election to Congress in December and the new government has not shown the same willingness to host the race.

"Formula E Operations (FEO) has been left with no choice other than to formally give notice to MAUD that it is in breach of contract. FEO is considering its position and what steps it may take under the Host City Agreement and applicable laws. All of FEO’s rights in that regard are reserved," the statement further read.

Earlier, a four-year agreement was signed between Formula E and the Telangana government. The Hyderabad E-Prix would have been the only official FIA World Championship event in India in 2024.

Alberto Longo, Co-Founder & Chief Championship Officer, of Formula E, said: "We are extremely disappointed for the huge motorsport fanbase in India. We know that hosting an official motorsport world championship race is an important and prestigious occasion for Hyderabad and the whole country."

"The President of the Federation of Motor Sports Clubs of India (FMSCI), Akbar Ebrahim, and his team have been incredibly supportive in bringing Formula E back to Hyderabad. They share our disappointment in the decision of the Government of Telangana which means that will not happen," he added.

Jeff Dodds, CEO, of Formula E, said: “It is deeply frustrating that we cannot build on the success of the inaugural race last year, which delivered almost 84m USD in positive economic impact to the region. We are also disappointed for our major Indian partners, particularly Mahindra and Tata Communications. Racing in Hyderabad was important to showcase the benefits of adopting electric vehicles in a market where pollution from vehicle engines has a massive impact on public health and the environment.”