Government sources believe that the ED, which has taken up an investigation into the Formula-E race case, is likely to seek KTR’s custody if the ACB proceeds to arrest him.
Published Apr 17, 2025 | 12:16 PM ⚊ Updated Apr 17, 2025 | 12:16 PM
KT Rama Rao.
Synopsis: The Congress government in Telangana is likely to arrest BRS Working President KT Rama Rao (KTR) in the alleged Formula-E race scam case. The move is also being seen as an attempt to shift the focus and media scrutiny on the Kancha Gachibowli land auction row.
In a big move which is sure to flare up political tensions in Telangana, it seems that groundwork is being laid by the Congress government to arrest BRS Working President and former Municipal Administration minister KT Rama Rao (KTR) in the alleged Formula-E race scam case.
Four months after he appeared for questioning before the Anti-Corruption Bureau (ACB), sources suggest Rama Rao — popularly known as KTR— may be facing arrest sooner rather than later.
Preparation for KTR’s arrest comes at a time when Telangana Chief Minister A Revanth Reddy is in Japan for a week-long tour. KTR was grilled by the Anti-Corruption Bureau (ACB) in January this year after the Telangana High Court refused to entertain his quash petition.
The Congress government secured the Governor’s nod to prosecute KTR last year, after which the ACB expedited the probe based on a complaint by the Municipal Administration Department, which alleged financial irregularities in releasing money for the event.
While there is no confirmation, government sources believe that the Enforcement Directorate (ED), which has taken up an investigation into the Formula-E race case, is likely to seek KTR’s custody if the ACB proceeds to arrest him.
The move is also being seen as an attempt to shift the focus and media scrutiny on the Kancha Gachibowli land auction row, which has left the Telangana government red-faced over the Supreme Court’s ire as well as civil society protests.
Aware of the government’s plans to arrest KTR, the BRS leadership and digital media wing are said to be preparing for the eventuality and has put a course of an action plan.
Incidentally, in an unrelated development, the Congress government is said to be putting together a dossier on former BRS MP Joginapally Santhosh Kumar, a kin of BRS patriarch K Chandrasekhar Rao and KTR, over financial transactions. Santhosh Kumar is related to the media house Namasthe Telangana and is the general secretary of BRS.
Ironically, the Congress at the national level has been criticising the Narendra Modi-led BJP government for misusing central agencies like the ED to file cases against its leaders. The latest example is the cases against Sonia Gandhi and Rahul Gandhi in the National Herald Case.
The case in question is related to alleged financial irregularities in funding one of the four seasons of the Formula E races in Hyderabad. To conduct 9,10,11,12 seasons of the Formula E Race, the Municipal Administration department under the former BRS government 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 10 and 11 February 2023.
The promoter, Ace Nxt Gen, who was supposed to finance four seasons of the Formula E Race, dropped out unilaterally in the second season, citing losses in the first season. As the FEO was willing to organise the second season, the then principal secretary of the Municipal Administration Department, Arvind Kumar, on the advice of the then Municipal Minister KT Rama Rao, transferred to FEO ₹55 crore, including ₹9 crore as taxes.
The Hyderabad Metropolitan Development Authority (HMDA) then transferred the amount after dropping Ace Next Gen as the promoter. The government later included HMDA as the promoter.
The HMDA then signed a Memorandum of Understanding (MoU) with FEO on 30 October 2023 which is considered another irregularity. The other alleged irregularities included making payment of one tranche of money to FEO after the issue of the schedule for Assembly elections in Telangana without obtaining permission from the Election Commission, and making payment to FEO in pounds without obtaining clearance from the RBI.
(Edited by Muhammed Fazil.)
