Hyderabad:

A corruption case has been filed against KT Rama Rao, former minister of Telangana and the son of former Chief Minister K Chandrashekar Rao, over alleged irregularities in Formula E race held at Hyderabad in February 2023. The Anti-Corruption Bureau, which filed the case, has alleged that Rs 55 crore was allegedly transferred to Formula E organisers on the verbal orders of Mr Rao. 

Mr Rao has alleged that he is being targeted by the Congress government of Revanth Reddy, which came to power in the state last year, ending the 10-year rule of Mr Rao’s party, the Bharat Rashtra Samithi or BRS.

But on November 7, he said he was ready to face any inquiry. “It is the governor’s discretion. I have no objection if the governor gives permission for prosecution. We welcome it. We are ready for any inquiry,” he had told reporters.

In October this year, the Anti-Corruption Bureau had sought Telangana Governor Jishnu Dev Varma’s nod to investigate KTR in the Formula E case.

Sources said former Municipal Administration and Urban Development principal secretary Arvind Kumar has admitted transferring Rs 55 crore to the event organisers on the verbal orders of the former minister who held the portfolio.

The irregularities in the transfer were multiple. Not only was the transfer made on verbal orders, it circumvented the cabinet approval and was done after elections were announced in Telangana without taking permission of the Election Commission.

It has also been alleged that the payment was made in pounds without the clearance of the Reserve Bank of India.

Mr Rao, who is also known as KTR, also held the Industry portfolio under the previous government headed by his father and BRS chief K Chandrashekar Rao. 

To conduct seasons nine,10,11 and 12 of the Formula E Race, the Municipal Administration and Urban Development department or MAUD, had signed a tripartite agreement with Formula E Organisers (FEO) and Ace Nxt Gen Pvt limited in 2022. The ninth season of the car race was held in Hyderabad on February 10 and 11, 2023 and the next one scheduled for February 2024.

The promoter, Ace Nxt Gen, then dropped out, citing losses. 
Since the FEO was willing to organise the next season, Arvind Kumar transferred Rs 55 crore – including Rs 9 crore as taxes – to it, allegedly on the verbal order of Mr Rao.

After the Congress came to power last year, the Formula E Organisers pulled out and cancelled the February race.

Hyderabad:

The Telangana governor has cleared an investigation against BRS leader and former state minister KT Rama Rao over alleged irregularities to the tune of Rs 55 crore in the organisation of a Formula E race in Hyderabad last year and the deal for future races, sources said on Friday. 

Mr Rao, who is also known as KTR, held the Industry and Municipal Administration and Urban Development portfolios, among others, under the previous government headed by his father and Bharat Rashtra Samithi (BRS) Chief K Chandrashekar Rao. 

The Anti-Corruption Bureau had sought Telangana Governor Jishnu Dev Varma’s nod to investigate KTR in the Formula E case. The Bureau has alleged that, as the Municipal Administration and Urban Development (MAUD) minister, Mr Rao had given oral instructions for the transfer of Rs 55 crore to one of the race’s organisers, bypassing laid-down procedures. 

During the Anti-Corruption Bureau (ACB) investigation, which was triggered by a complaint from MAUD, a senior official from the department, Arvind Kumar –  who held the post of principal secretary at the time – had admitted that the instructions had been issued verbally by the then minister. 

Mr Rao, who is the MLA from Sircilla, had said last month that Hyderabad had benefited from hosting the Formula E race, which could generate a revenue of Rs 750 crore. He alleged that he was being targeted by the current Congress government led by Revanth Reddy – which dislodged the BRS last year after nearly a decade in power since Telangana’s formation in 2014 – and the BJP.

“Even the fear of imprisonment won’t stop me. If the government permits the investigation, I am ready to go to jail. I will plan a ‘padyatra‘ (foot march) while I am behind bars,” he said. 

The former minister had also claimed that cabinet approval was not needed for transferring the money. 

Contract Details

To conduct seasons nine,10,11 and 12 of the Formula E Race, MAUD had signed a tripartite agreement with Formula E Organisers (FEO) and Ace Nxt Gen Pvt limited in 2022. The ninth season of the car race was held in Hyderabad on February 10 and 11, 2023.

The promoter, Ace Nxt Gen, then dropped out, citing losses. Since the FEO was willing to organise the next season, Arvind Kumar transferred Rs 55 crore – including Rs 9 crore as taxes – to it, allegedly on the advice of Mr Rao

Another alleged irregularity included transferring a tranche of money to FEO after the schedule for the Assembly elections in Telangana was announced, without taking permission from the Election Commission, and making payments in pounds without obtaining clearance from the RBI.