Governor Approves KTR Prosecution In Formula E Row

Telangana Governor Jishnu Dev Varma today granted approval to the Anti-Corruption Bureau (ACB) to initiate legal action against former BRS minister K T Rama Rao in connection with the Formula-E car race case, which involves suspected misappropriation of Rs 54.88 crore in public funds.

However, police officials have not yet issued an official statement on the matter.

The case stems from a complaint lodged on October 18, 2024, by M Dana Kishore, Principal Secretary of the Municipal Administration and Urban Development (MA&UD) department.

In the complaint, he accused the Hyderabad Metropolitan Development Authority (HMDA) of causing a loss of Rs 54.88 crore to the State exchequer by making payments to Formula-E Operations Limited (FEO) without obtaining the necessary approvals from the Cabinet or the finance department.

The complaint was submitted after the Congress assumed power.

On December 19, 2024, the ACB registered a case against KTR, former Special Chief Secretary to the MA&UD Arvind Kumar, and former Chief Engineer of HMDA B L N Reddy. According to the FIR, a total of Rs 45.7 crore was transferred to FEO between September and October 2023, despite the termination of the company's agreement with the Telangana government. Investigators said that the transaction imposed an additional tax burden of Rs 8.06 crore on HMDA.

The ACB also mentioned that a tripartite agreement signed in October 2022 among the Telangana government, FEO and sponsor Ace Nxt Gen Pvt Ltd had limited the government's financial liability. However, conflicts between FEO and Ace Nxt Gen reportedly prompted the State to take on financial obligations without regulatory authorisation, resulting in substantial financial losses.

KTR faces allegations of improperly utilising government funds and misusing his power during his tenure as Municipal Administration and Urban Development Minister.

Sources indicate that the Governor has approved the inquiry, and that anti-corruption officials are expected to intensify their investigation into the BRS working president.