A blame game has started between Telangana government and Formula E after the cancellation of the electric race in Hyderabad.

The second edition of Hyderabad E Prix was scheduled to be held on February 10 but Formula E cancelled the race alleging a breach contract by the new Telangana government.

A four-year agreement was signed between Formula E, the BRS-governed Telangana government and Greenko, which pulled out of the event after the inaugural edition. Congress came into power in December and staging the race is not at the top of its priority list.

Last week, Deputy Chief Minister Mallu Bhatti Vikaramarka said the his government would explore legal action against the tri-partite agreement between the Municipal and Urban department (MA&UD), Formula E and local promoter Greenko as it was executed in violation of Secretariat business rules.

The decision to host the second round was taken towards the end of the previous government's tenure with the MA&UD paying half of the licensing fee to Formula E amounting to approximately Rs 50 crore.

While Formula E is seeking the remaining amount as per the contract, the new government is considering ways to recover the money paid to series organisers.

On Thursday, Formula E issued a fresh statement saying that it will take legal action to ensure the race contract is honoured.

"Formula E has been made aware of media reports relating to the status of the agreement which it entered into in relation to the hosting of the Hyderabad E-Prix.

"These media reports followed Formula E having given notice of breach to its contractual party and having cancelled the race, which had been scheduled to take place in February 2024.

"All allegations are denied. Formula E will be taking all available legal action to enforce its rights under its agreement with the Government of Telangana," said Formula E.

In response to the event's cancellation, the Deputy Telangana CM had said: "First and foremost, in the initial tripartite agreement, there was nothing for the state.

"Moreover, they proceeded to enter into a bipartite agreement in which the MA&UD Special Chief Secretary committed to paying Rs 110 crore.

"These agreements offer no benefits to the people. Why undertake all this? Is it merely for the Formula E people to have a glimpse of the state for Rs 110 crore." He had also hit out at former IT Minister K T Rama Rao, who was instrumental in bringing the race to Hyderabad.

The inaugural race last year was the first FIA World Championship status event held in India since Formula 1 left the country in 2013.

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