Preliminary investigation allegedly pointed to misuse of ₹55 crore transferred to a foreign firm without following due process. The Congress government had also sought an explanation from former MA&UD secretary Arvind Kumar.
Published Dec 13, 2024 | 11:41 PM ⚊ Updated Dec 14, 2024 | 9:30 AM
ED summons KTR for questioning in Formula E race case on 7 January
In what could spell trouble for BRS working President KT Rama Rao (KTR), the Anti Corruption Bureau (ACB), probing the alleged corruption in the Formula E race, may knock on his doors.
Sources suggested that Telangana Governor Jishnu Dev Varma is set to give his nod to ‘examine’ KTR’s role in the alleged multi-crore scam in organising Formula E races in Hyderabad during the BRS rule. Following a legal ‘all clear’ by the Attorney General, Governor Varma is all set to send the files sanctioning action against KTR to the Secretariat.
Once the official sanction reaches the Secretariat, it may only be a matter of time before KTR is asked to appear for questioning and subsequently, the next process in the investigation would follow.
In October this year, the Municipal Administration and Urban Development (MA&UD) Department wrote to the ACB, alleging a scandal in the Formula E race held under the BRS regime. KTR was the MA&UD minister in the previous BRS regime in 2023.
File photo of KTR. (KTRTRS/Facebook)
Based on the department’s complaint, Chief Minister A Revanth Reddy asked the ACB to probe the allegations. Preliminary investigation allegedly pointed to misuse of ₹55 crore transferred to a foreign firm without following due process. The Congress government had also sought an explanation from former MA&UD secretary Arvind Kumar.
Based on the ACB’s findings, the government approved inquiry against officials but since KTR being an elected representative and a former minister, the ACB sought legal advice and due permissions. The Telangana government is said to have then written to the Governor seeking permission to initiate action against KTR in the case.
Sources suggested that the Governor had sought Attorney General’s advice on the government’s request. The AG has pointed to the Governor that there is no bar in proceeding legally. Based on the AG’s advice, once the Governor formally issues permission, action can be initiated against KTR, sources said.
It may be noted that weeks ago, Revanth Reddy at a media event had accused the BJP and BRS of being hand-in-glove over the Governor’s delay in sanctioning permission to prosecute KTR.
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).
