Telangana ACB Files Case Against KTR Over Alleged Financial Irregularities in Formula E Race

Hyderabad, 19th December 2024: The Telangana Anti-Corruption Bureau (ACB) filed a case on Thursday against K T Rama Rao (KTR), working president of Bharat Rashtra Samithi (BRS) and son of former Chief Minister K Chandrashekar Rao, regarding alleged financial irregularities in the organization of the Formula E car race in Hyderabad in February 2023.

KTR is named as the primary accused, with former Municipal Administration and Urban Development (MAUD) principal secretary Arvind Kumar and former Hyderabad Metropolitan Development Authority (HMDA) chief engineer BLN Reddy listed as co-accused.

The case stems from claims of financial mismanagement during KTR’s tenure as MAUD minister, specifically relating to payments for the Formula E race. The ACB alleges that KTR authorized payments without Cabinet approval. The HMDA allegedly transferred Rs 45 crore in two instalments to Formula E Organisers (FOE), breaching RBI regulations. This led to a fine of Rs 8 crore imposed on the state government by the RBI, which was later paid by the Congress government that came into power in late 2023. Investigations by the new government revealed the financial irregularities, prompting the ACB’s action.

The FIR includes charges under the Prevention of Corruption Act, as well as sections of the IPC, including criminal breach of trust and conspiracy. The case was filed after receiving approval from Governor Jishnu Dev Varma to prosecute KTR.

In response, KTR requested that the Formula E issue be discussed in the Legislative Assembly to clarify the situation to the people of Telangana. Following the change in government in December 2023, Congress officials raised corruption concerns regarding the Formula E event.

One key allegation is that KTR failed to secure Cabinet approval before transferring funds to a foreign company. The money was reportedly transferred to entities unconnected to the race organization during a period when the Model Code of Conduct was in effect ahead of elections. KTR, however, denied any wrongdoing, maintaining that the event was organized to boost Hyderabad’s global profile.

The race was held in Hyderabad in February 2023, after agreements were signed in 2022 between the Municipal Administration, Formula E Organisers (FEO), and Ace Nxt Gen Pvt Limited. Ace dropped out after the ninth season, but FEO continued with plans for the 10th season. Arvind Kumar authorized the transfer of funds after discussions with KTR.

KTR has repeatedly stated that no illegal activities occurred in organizing the event and expressed his willingness to face legal consequences if any wrongdoing is proven. He defended the decision to host the race as a strategic move to elevate Hyderabad’s global image.