As soon as ACB named KTR as Accused No. 1 in the Formula E Race case for releasing ₹55 crore to a foreign company, Revanth Reddy announced the formation of a special investigation team (SIT) to probe the Nehru Outer Ring Road contract
Published Dec 19, 2024 | 8:43 PM ⚊ Updated Dec 19, 2024 | 10:26 PM
Revanth Reddy in Assembly. (Screengrab)
The A Revanth Reddy-led government appears to be set on going after former Municipal Administration Minister KT Rama Rao with all guns blazing.
No sooner the ACB listed KTR as accused no:1 in the Formula E Race case, that Revanth Reddy announced the formation of the special investigation team (SIT) to probe the award of 158-km long Nehru Outer Ring Road maintenance contract to a private company.
The chief minister, making a statement in the Telangana Assembly, in a voice that was half-taunting and half- serious, said that he was ordering the investigation by the SIT with the consent of all members, mainly the Opposition BRS leader T Harish Rao.
The chief minister, after a lengthy explanation of how the Congress government, prior to the formation of Telangana state in 2014, had developed Hyderabad by taking up several infrastructure projects, said that one such money spinner for the government was the outer ring road.
But the BRS leaders who were sure of losing the elections last year, had given the contract for maintenance of the outer ring road to a private company and planned to flee the country with the commission earned on it.
As the chief minister was announcing the constitution of the SIT, there were loud protests from the BRS members and cheers from the treasury benches. Revanth Reddy went on to say that very soon, the issue would be taken up in the next cabinet meeting where the other details would be finalised.
In fact, it was Revanth Reddy, who had raised his voice against awarding of the ORR maintenance contract to IRB Infra, allegedly for a pecuniary consideration of ₹1,000 crore.
The “scam was uncovered” in April 2023, when the incumbent Telangana Chief Minister was the TPCC president. His charge was that the then BRS government had offered the maintenance contract for 30 years to IRB Infrastructure Developers Limited, for ₹7,380 crore which he termed as a pittance.
As the then PCC president, he had said he would review the contract and send the politicians and the officials who were involved in the scam, up the river, after coming to power.
He also warned the private company that it would have to face the prospect of a review of the award given to it and how it was implementing it. He said that by awarding the contract for ₹7,380 crore for a “pay-off” of ₹1,000 crore, the then BRS regime had caused a loss of ₹ 30,000 crore revenue to the government as toll collection per day on ORR was ₹2 crore.
Revanth Reddy said that the opportunities for the government to earn more money apart from toll fees were limitless, yet it gave away the contract for 30 years to IRB Infra.
The case has been lying dormant since the advent of the Congress government. Only in February, the chief minister asked the then joint commissioner of Hyderabad Metropolitan Development Authority (HMDA), Amrapali Kata, to delve into the scam and submit a report to him so that he could discuss it in the cabinet.
At the review meeting, officials are said to have told Revanth Reddy that award of contract had been done in accordance with rules and the government doesn’t have enough grounds to rescind it. This perhaps explains why the project hasn’t been reviewed. Representatives of IRB Infra are also understood to have met higher ups in the government and explained their position.
When Revanth Reddy, while in opposition made the allegations, the then BRS government had rebutted them. Arvind Kumar, who was the special chief secretary of the MAUD insisted that the process of awarding the work to the private agency was done transparently.
He maintained that the tenders for the awarding of the work were called in accordance with the rules laid down by the National Highway Authority of India (NHAI). The agency that got the work would not be allowed to raise toll charges without obtaining permission from NHAI, he had said.
Responding to the allegations levelled against him in connection with the Formula E racing event, KTR accused the state government of filing baseless and politically motivated cases to divert public attention from its administrative failures.
“We are not just leaders but sons of a movement,” KTR said“These fabricated cases and conspiracies will neither intimidate us nor deter us from our fight against corruption and incompetence. I have done no wrong, and I am confident of proving my innocence through legal means,” he said in a statement.
KTR provided a detailed explanation of the transactions and dismissed the allegations as baseless: The Telangana government, through the Hyderabad Metropolitan Development Authority (HMDA), spent ₹30 crore, while private sponsor Ace Urban contributed ₹110 crore. An independent study by Nielsen concluded that the event generated an economic impact of ₹700 crore for Hyderabad, the statement read.
The cancellation of subsequent races occurred due to the private sponsor’s financial constraints and the Congress government’s failure to honour contractual obligations.
KTR clarified that the HMDA had adhered to legal provisions, and funds were transparently transferred through government bank channels. He emphasised that Hyderabad had gained global recognition through the Formula E event, attracting significant investments in the electric vehicle sector. However, the Congress government’s inept handling of the situation caused reputational damage to Hyderabad and Telangana on the international stage.
KTR accused Chief Minister Revanth Reddy and his administration of attempting to divert attention from the Congress government’s unfulfilled promises.
He challenged the government to present evidence of corruption in the ongoing Assembly session, alleging that they lacked any proof.
KTR announced that the BRS legal cell would take all necessary steps to expose the government’s political vendetta.
He also highlighted instances where international organisers of Formula E, dissatisfied with the government’s decisions, initiated arbitration proceedings, causing further embarrassment to Telangana.
Drawing parallels to a similar scenario in Montreal, Canada, where a local government cancelled Formula E races, KTR pointed out that the organisers successfully sued for damages.
“This government’s baseless allegations and diversion tactics will not succeed,” KTR said. “The Congress must focus on fulfilling its promises to the people instead of targeting the opposition with unfounded accusations. The people of Telangana deserve better governance.”
The former minister expressed confidence that the truth would prevail, urging citizens to recognise the Congress government’s attempts to mislead them.
(Edited by Ananya Rao)
