There are allegations that Rs 55 crore was transferred to Formula E organizers on verbal orders from KTR.
Hyderabad:
A corruption case has been filed against KT Rama Rao, former Telangana minister and son of former Chief Minister K Chandrashekar Rao, for alleged irregularities during the Formula E race held in Hyderabad in February 2023. The Anti-Corruption Bureau, which filed the case, has alleged that Rs 55 crore was allegedly transferred to the Formula E organizers on the verbal orders of Mr Rao.
Mr. Rao has alleged that he is being targeted by Revanth Reddy's Congress government, 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 .
But on November 7, he said he was prepared to face any investigation. “It is the governor's discretion. I have no objection to the governor authorizing prosecution. We are happy with it. We are ready for any investigation,” he had told reporters.
In October this year, the Anti-Corruption Bureau had sought Telangana Governor Jishnu Dev Varma's permission to investigate KTR in the Formula E case.
Sources said former principal secretary of municipal administration and urban development Arvind Kumar has admitted that he transferred Rs 55 crore to the event organizers on the verbal orders of the former minister who held the portfolio.
The irregularities in the transfer were numerous. The transfer was not only done on verbal orders but also bypassed Cabinet approval and took place after elections were announced in Telangana without the approval of the Election Commission.
It is also alleged that the payment was made in pounds without the consent of the Reserve Bank of India.
Mr Rao, also known as KTR, also held the Industries portfolio under the previous government led by his father and BRS chief K Chandrashekar Rao.
To conduct seasons nine,10,11 and 12 of Formula E racing, the Department of Municipal Administration and Urban Development (MAUD) had signed a tripartite agreement with Formula E Organizers (FEO) and Ace Nxt Gen Pvt Limited in 2022 . of the car race was held in Hyderabad on February 10 and 11, 2023 and the next one was scheduled for February 2024.
The promoter, Ace Nxt Gen, subsequently quit due to losses.
As the FEO was willing to host the next season, Arvind Kumar transferred Rs 55 crore – including Rs 9 crore as taxes – to the FEO, allegedly on Mr Rao's verbal orders.
After Congress came to power last year, Formula E organizers backed down and canceled the February race.