Centre’s inaction in Kaleshwaram and Formula E cases: Did BJP use Congress to bend BRS?

Until Chief Minister Revanth announced that the Kaleshwaram case would be handed over to the CBI, State BJP leaders had been demanding that the probe be given to the central agency. But after Revanth’s announcement, there has been complete silence from the saffron party.

Published Nov 04, 2025 | 10:30 PMUpdated Nov 04, 2025 | 10:30 PM

Congressmen believe that the two major weapons they had to pin down the BRS are being blunted by tacit support for the regional party from the New Delhi establishment.

Synopsis: Leaders of the Congress government in Telangana suspect an ‘unholy bond’ between the BJP-led Union government and the opposition BRS in the state, citing the saffron party’s reluctance to act against former Chief Minister K Chandrashekar Rao, his cabinet colleagues, and his son KT Rama Rao in two alleged scandals from the previous BRS regime: the Kaleshwaram Project and the alleged irregularities in the Hyderabad Formula E race. 

The ruling Congress in Telangana is unhappy with the Bharatiya Janata Party (BJP)-led National Democratic Alliance government at the Centre for its inaction on two alleged scandals from the previous Bharat Rashtra Samiti (BRS) regime involving then Chief Minister K Chandrasekhar Rao and his Cabinet colleagues.

Chief Minister A Revanth Reddy, during private conversations with his colleagues, is said to have expressed his dissatisfaction over the BJP’s reluctance to take any steps that could prove troublesome for the BRS or its leaders.

At the top of the list is the Kaleshwaram Lift Irrigation Project, constructed at a cost of over ₹1 lakh crore during KCR’s tenure.

The other relates to alleged irregularities in organising the Formula E race, involving BRS working president and KCR’s son, then Municipal Administration Minister KT Rama Rao (KTR).

“If the BJP doesn’t have a bond with the BRS, let them prove it by having the CBI file an FIR in the Kaleshwaram case by 11 November and act against K Chandrashekar Rao and T Harish Rao. The Governor too must clear the way to arrest KTR by clearing hurdles to prove the ‘Formula E’ race,” Chief Minister Revanth said while addressing a public meeting during the Jubilee Hills bypoll campaign on the evening of Tuesday, 4 November.

Also Read: Are Telangana BJP leaders quietly hoping for a Congress win in Jubilee Hills bypoll?

State awaits CBI to take up Kaleshwaram probe months after notification

The PC Ghose Commission, set up by the Revanth Reddy government soon after it came to power, submitted its report on the Kaleshwaram project in July of this year.

The commission highlighted procedural and financial irregularities, design flaws, and construction defects in the Medigadda, Annaram, and Sundilla barrages, which led to major cost overruns.

The probe panel directed the construction company L&T and other agencies to rectify the defects at their own cost. It held former Chief Minister K Chandrashekar Rao and former Irrigation Minister T Harish Rao responsible for lapses at every stage, from planning to construction and operation.

The report found that the final cost had far exceeded the initial outlay and cited this as one of its key findings, along with design flaws, inadequate vetting, and the absence of third-party checks.

After a marathon discussion in the State Assembly on 31 August, Chief Minister Revanth Reddy announced that the investigation into the alleged irregularities would be handed over to the Central Bureau of Investigation.

During the debate, Reddy accused the previous BRS regime of “swindling public money” through the project. He said the Kaleshwaram Corporation had borrowed ₹85,449 crore from multiple agencies at high interest rates.

“It has been two months since the CBI was notified of the State government’s decision to hand over the probe to the central agency. Not even a preliminary inquiry, the first mandatory step before the CBI begins a full-fledged investigation, has been initiated so far,” a Minister pointed out.

“How else do we interpret this except as an unholy, unofficial alliance between the BJP and the BRS?” he asked.

Curiously, until Chief Minister Revanth announced that the case would be handed over to the CBI, State BJP leaders had been demanding that the probe be given to the central agency. But after Revanth’s announcement, there has been complete silence from the saffron party.

This mirrors the typical playbook the BJP follows, using central agencies more to pressure regional parties than to actually act against them.

Also Read: Cornered by colleagues, CM Revanth takes battle with Telangana PCC chief, ministers head-on

Prosecution in Formula E case awaits clearance

The same is the case with the Formula E “scam”. The core issue is the alleged financial impropriety in the agreement between the Hyderabad Metropolitan Development Authority (HMDA) and Formula E Operations Ltd (FEO) for hosting the Formula E race.

An investigation was initiated by the Anti-Corruption Bureau (ACB) in October 2024 following a complaint that payments had been released without mandatory approvals, resulting in a financial loss of over ₹50 crore to the government.

After completing its investigation, the ACB submitted its report to the government.

Based on the report, the government sought the Governor’s permission to prosecute KTR, and then Municipal Administration Principal Secretary, senior IAS officer Arvind Kumar.

While the Governor is understood to have orally conveyed his willingness to grant permission for KTR’s prosecution, the file has been held up at Raj Bhavan as clearance from the Department of Personnel and Training (DoPT) is required to initiate criminal proceedings against an IAS officer.

In 2018, the Prevention of Corruption Act (PCA) was amended, making it mandatory for any government to obtain DoPT approval before prosecuting an IAS officer.

“We are unable to proceed in the matter as the DoPT is sitting on the file which was referred to it almost four months ago,” explained an official.

He said the prosecution would carry weight only if it proceeds against both KTR and Arvind Kumar, as both are alleged to have acted in tandem in releasing ₹50 crore to FEO without following due procedures and when the model code of conduct was in force.

Congressmen believe that the two major weapons they had to pin down the BRS are being blunted by tacit support for the regional party from the New Delhi establishment.

(Edited by Dese Gowda)

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