Telangana ACB Files Case Against KTR Over Formula E Race Funds Mismanagement

Hyderabad: The Telangana Anti-Corruption Bureau (ACB) on Thursday registered a case against BRS working president and MLA K T Rama Rao as prime accused over alleged payments, some of it in foreign currency without approvals, to conduct a Formula-E race in Hyderabad during the previous regime, official sources said.

Formula E had announced the cancellation of Hyderabad E-Prix, alleging a contract breach by the new Telangana government. The second Formula E Race in India was slated to be held on February 10.

Governor Jishnu Dev Varma had recently granted permission to register a case against Rama Rao, over the issue.

The FIR named senior IAS officer Arvind Kumar and retired bureaucrat BLN Reddy as accused no 2 and 3 respectively.

The case was registered under relevant sections of the Prevention of Corruption Act and criminal breach of trust, and conspiracy under IPC.

Reacting to the ACB case against him, Rama Rao told the Assembly today that if the government is sincere in revealing facts of the issue, it should call for a debate.

“Just now my MLAs informed me (about the case). I am requesting you ( the Speaker) and the government. The assembly sessions are going on. If the government is sincere, if it is courageous enough to reveal the facts to the public, let there be a discussion on E race (in the assembly). I am ready to reply,” he said.

The FIR alleged that the agreement between the state government and the race organisers without the approval of the cabinet and also that it was done during the Model Code of Conduct was in force.

The Telangana government had written to the governor in November, seeking permission to register an FIR against Rama Rao over the alleged irregularities in paying Rs 55 crore worth in foreign currency.

The Municipal Administration department had reportedly urged the ACB to investigate the matter.

Earlier this year, the government had sought an explanation from Arvind Kumar over signing an agreement concerning the Formula-E race allegedly without the approval of the competent authority and also making a payment of Rs 55 crore with the majority of it in foreign currency.

Rama Rao, who was the Municipal Administration minister during the previous BRS regime, was instrumental in hosting the race last year in Hyderabad.

Though the race was supposed to be held in February this year as well, it was cancelled after the Congress government assumed office in December 2023.

Rama Rao had in a post on X recently said he would face the cases against him legally.

Charging that the Congress government has been making baseless allegations against Rama Rao on the issue for several months now, BRS said the previous government had entered into an agreement with the organisers of the Formula-E race to benefit Telangana.