The state government had sought clearance from the governor for permission to prosecute KT Rama Rao and others in the case for releasing ₹55 crore without clearance of the state Finance Department and the RBI.
Published Dec 16, 2024 | 10:33 PM ⚊ Updated Dec 16, 2024 | 10:33 PM
Telangana Governor Jishnu Dev Varma unveils the government's vision for development of the state (Wikimedia Commons)
Telangana Governor Jishnu Dev Varma has given permission to investigate the irregularities in connection with organising the Formula-E race in Hyderabad in February.
It has been alleged that financial irregularities occurred in the release of ₹55 crore for holding the event.
“As the state government has got the clearance to investigate the case, the law will now take its course,” Information and Public Relations Minister Ponguleti Srinivasa Reddy said in an informal chat with journalists after a state Cabinet meeting on Monday, 16 December.
He, however, was non-committal when asked if former municipal administration minister KT Rama Rao would be arrested.
“I don’t know if KTR will be arrested or not. But the investigation into the case will begin,” he said. Reddy pointed out that clearance was given to investigate the role of the former special chief secretary of the Municipal Administration Department, Arvind Kumar.
The minister said the Formula E Race case came up for hearing in the Cabinet. “We have discussed how public money was plundered,” he said.
The state government had sought clearance from the governor for permission to prosecute BRS working president Rama Rao and others in the case for releasing ₹55 crore without clearance of the state Finance Department and the RBI. The payment was made in foreign exchange.
The minister said that those who involved in the case will have to answer the Anti-Corruption Bureau’s questions.
“I am sure, when the ACB begins investigating, it would lead to a major discovery,” he said. The minister, however, said that it would be up to “them” to decide on how “they” would take out a padayatra, whether on foot or knees after a jail term.
Reddy was apparently referring to Rama Rao’s earlier comment that if jailed, he would take up a padayatra after his release.
On the commission of inquiry into irregularities in the power sector, the minister said everything would come out in the open at the appropriate time.
The case 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 ₹55 crore to FEO, 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 entered into an MoU with FEO on 30 October 2023 which is considered other irregularity.
The other irregularities alleged 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 British pounds without obtaining clearance from the RBI.
(Edited by Majnu Babu).
