Formula E Controversy: KTR Faces ₹45 Crore Corruption Case In Hyderabad

The Telangana Anti-Corruption Bureau (ACB) has registered a case against K.T. Rama Rao (KTR), working president of the Bharat Rashtra Samithi (BRS) and son of former Chief Minister K. Chandrashekar Rao, over alleged financial irregularities in organizing the Formula E race in Hyderabad in February 2023.

This high-profile case has also implicated former Municipal Administration and Urban Development (MAUD) principal secretary Arvind Kumar and former Hyderabad Metropolitan Development Authority (HMDA) chief engineer B.L.N. Reddy.

Photo Credit: Oneindia

Key Allegations in the Case

Unauthorized Payments:

• KTR allegedly authorized ₹45 crore in payments to Formula E Organisers (FEO) without prior Cabinet approval.

Violation of RBI Guidelines:

• The Reserve Bank of India imposed an ₹8 crore fine on the Telangana government for unauthorized foreign transactions.

Election Code Breach:

• Payments were reportedly made during the enforcement of the Model Code of Conduct, bypassing the Election Commission's approval.

Financial Mismanagement:

• Funds were allegedly transferred to accounts of unrelated individuals and entities, raising questions about the transparency of the transactions.

Photo Credit: Oneindia

Congress Government's Role

The case surfaced after the new Congress-led government, under Chief Minister A. Revanth Reddy, investigated the RBI fine imposed on the state. The findings uncovered potential violations in hosting the Formula E race, leading to the ACB filing an FIR under the Prevention of Corruption Act and IPC sections 409 (criminal breach of trust) and 120B (criminal conspiracy).

KTR Defends the Event

KTR has consistently denied allegations of irregularities, stating that the event aimed to bolster Hyderabad's global reputation. He claimed that the HMDA operated independently, negating the need for Cabinet or Finance Department approval.

"I am willing to go to jail if any illegal actions are found. I'll use the time to stay fit and plan a padayatra," said KTR, addressing the allegations.

KTR explained that the decision to host the race involved a tripartite agreement between the state government, Greenko, and Ace Nxt Gen Pvt Ltd. While Ace Nxt Gen exited after the ninth season citing losses, KTR directed the HMDA to transfer funds to the organizers to ensure the event continued as planned.

Reactions from BRS Leaders

Senior BRS leader and former minister T. Harish Rao defended KTR, claiming the case was politically motivated.

"KTR is being targeted for his efforts to enhance Hyderabad's global image," said Harish Rao.

ACB's Findings and Next Steps

The ACB alleges that Arvind Kumar, acting on KTR's instructions, transferred ₹45 crores in two instalments to FEO. The FIR also highlighted discrepancies in approvals, stating that the payments lacked the necessary Cabinet and Election Commission clearances.

With Governor Jishnu Dev Varma granting permission for KTR's prosecution, the case is set to intensify, raising questions about financial accountability and governance.

Impact on Telangana Politics

The controversy surrounding KTR has triggered a political storm in Telangana. The Congress government has called for transparency and accountability, while the BRS accuses them of using the case to defame KTR ahead of future elections.

This case not only puts KTR's political future in question but also brings into focus the governance practices of the previous BRS administration. As the investigation progresses, all eyes remain on how this legal battle unfolds.