Telangana Governor Jishnu Dev Varma has approved an investigation into Bharat Rashtra Samithi (BRS) leader and former state minister K.T. Rama Rao (KTR) over alleged irregularities involving â¹55 crore in the organization of a Formula E race in Hyderabad last year, as well as future race deals, sources revealed on Friday.
KTR, who held key portfolios such as Industry and Municipal Administration and Urban Development (MAUD) in the previous BRS government led by his father and BRS Chief K. Chandrashekar Rao, is now under scrutiny by the Anti-Corruption Bureau (ACB).
The Bureau alleges that as MAUD minister, KTR issued verbal instructions for transferring â¹55 crore to one of the event’s organizers, bypassing established procedures.
Allegations and Investigation
The ACB initiated its investigation following a complaint from the MAUD department. Arvind Kumar, then the principal secretary of MAUD, reportedly admitted during the probe that the funds were transferred based on verbal instructions from KTR.
The transferred amount also included â¹9 crore in taxes. Additionally, payments were allegedly made in pounds without the necessary clearance from the Reserve Bank of India (RBI).
The Bureau also highlighted an irregularity in transferring funds after the Telangana Assembly elections schedule was announced, a move requiring prior permission from the Election Commission.
KTR’s Defense
KTR, an MLA from Sircilla, has defended his actions, stating that Hyderabad benefitted significantly from hosting the Formula E race, which he claims could generate â¹750 crore in revenue.
He accused the current Congress government, led by Chief Minister Revanth Reddy, of targeting him for political reasons.
"Even the fear of imprisonment won't stop me. If the government permits the investigation, I am ready to go to jail. I will plan a padyatra (foot march) while I am behind bars," KTR said. He also maintained that cabinet approval was not required for the money transfer.
Formula E Contract Details
The MAUD department signed a tripartite agreement in 2022 with Formula E Organisers (FEO) and Ace Nxt Gen Pvt. Ltd. to host seasons nine through twelve of the Formula E race.
The ninth season took place in Hyderabad on February 10 and 11, 2023. However, Ace Nxt Gen later withdrew from the project, citing losses.
Despite this, Arvind Kumar allegedly transferred â¹55 crore to FEO, reportedly on KTR’s advice, enabling the continuation of the event.
Political Fallout
The approval of the investigation comes amid a charged political environment in Telangana. The BRS, which ruled the state since its formation in 2014, was defeated by the Congress in last year’s elections.
The case against KTR is seen by some as a reflection of the growing rivalry between the Congress and BRS, with the BJP also leveraging the controversy to raise questions about governance and accountability.