A corruption case has been filed against KT Rama Rao, former minister of Telangana and the son of former Chief Minister K Chandrashekar Rao, over alleged irregularities in Formula E race held at Hyderabad in February 2023. The Anti-Corruption Bureau, which filed the case, has alleged that Rs 55 crore was allegedly transferred to Formula E organisers on the verbal orders of Mr Rao.
Mr Rao has alleged that he is being targeted by the Congress government of Revanth Reddy, which came to power in the state last year, ending the 10-year rule of Mr Rao’s party, the Bharat Rashtra Samithi or BRS.
In October this year, the Anti-Corruption Bureau had sought Telangana Governor Jishnu Dev Varma’s nod to investigate KTR in the Formula E case.
Sources said former Municipal Administration and Urban Development principal secretary Arvind Kumar has admitted transferring Rs 55 crore to the event organisers on the verbal orders of the former minister who held the portfolio.
The irregularities in the transfer were multiple. Not only was the transfer made on verbal orders, it circumvented the cabinet approval and was done after elections were announced in Telangana without taking permission of the Election Commission.
It has also been alleged that the payment was made in pounds without the clearance of the Reserve Bank of India.
Mr Rao, who is also known as KTR, also held the Industry portfolio under the previous government headed by his father and BRS chief K Chandrashekar Rao.
To conduct seasons nine,10,11 and 12 of the Formula E Race, the Municipal Administration and Urban Development department or MAUD, had 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 February 10 and 11, 2023 and the next one scheduled for February 2024.
The promoter, Ace Nxt Gen, then dropped out, citing losses.
Since the FEO was willing to organise the next season, Arvind Kumar transferred Rs 55 crore – including Rs 9 crore as taxes – to it, allegedly on the verbal order of Mr Rao.
After the Congress came to power last year, the Formula E Organisers pulled out and cancelled the February race.
