The Telangana Anti-Corruption Bureau (ACB) registered an FIR against BRS Working President KT Rama Rao in connection with alleged financial irregularities during the Formula E race held in Hyderabad last year. As per the FIR, the total value of properties involved is Rs 54,88,87,043.
The anti-graft agency named KT Rama Rao (KTR) as Accused No. 1 (A-1) in its FIR.
Former Special Chief Secretary of Municipal Administration, Arvind Kumar, has been designated as (A-2), and the Hyderabad Metropolitan Development Authority (HMDA) Chief Engineer, BLN Reddy, as A-3.
The case was booked under the Prevention of Corruption Act.
The ACB registered a case against KTR for alleged misuse of government funds under Sections 13(1)(A) and 13(2) of the Prevention of Corruption Act, along with Sections 409 and 120(B) of the IPC.
The FIR was registered two days after the Cabinet gave its nod following Governor Jishnu Dev Varma giving permission to try KTR.
There are allegations that Rs 55 crore was transferred from HMDA funds to Formula E Operations (FEO) without requisite approvals.
KTR, as then Minister for Industry, allegedly sanctioned funds for his race bypassing established procedures.
According to the FIR, the BRS leader authorised payments to Formula-E Organisers (FOE), a foreign company, without Cabinet clearance. The HMDA reportedly transferred Rs 46 crore in two instalments, violating RBI guidelines. This led to a fine of Rs 8 crore imposed on the Telangana Government by the RBI, which was later paid by the Congress government after assuming office in December 2023
The remaining amount was to be paid in two instalments.
Formula E cancelled the second Formula E race (Season 10) scheduled in Hyderabad on February 10, 2024. The announcement was made after a decision by the Municipal Administration and Urban Development Department (MAUD) of the Telangana government not to fulfil the Host City Agreement signed on October 30, 2023.
Formula E Operations (FEO) said it was left with no choice other than to formally give notice to MAUD for breach of contract.
The Congress government issued a notice to senior IAS officer Arvind Kumar for ‘serious violations’ regarding the agreement. The official was asked to explain why the huge financial expenditure of Rs 46 crore, plus the tax amount of Rs 9 crore, was paid from the Hyderabad Metropolitan Development Authority’s (HMDA) resources even before the agreement was signed.
