KTR Under Fire: Corruption Allegations Emerge from 2023 Formula E Race Irregularities

KTR claims he is facing political targeting from the Congress government led by Revanth Reddy, following their rise to power last year, which ended a decade-long rule by his party, the Bharat Rashtra Samithi (BRS).

P24 News Media

December 17, 2024

1 minute

KTR Under Fire: Corruption Allegations Emerge from 2023 Formula E Race Irregularities

India

In Hyderabad, a significant corruption case has emerged against KT Rama Rao, the former Telangana minister and son of the ex-Chief Minister K Chandrashekar Rao. This action arises from alleged financial misconduct related to the Formula E race conducted in February 2023. The Anti-Corruption Bureau has put forth claims that a substantial amount of ₹55 crore was purportedly transferred to the organizers of Formula E based solely on verbal instructions from Mr. Rao.

Mr. Rao has contended that these allegations are politically motivated, suggesting that the Congress government, led by Revanth Reddy, is targeting him. This government assumed power last year, concluding a decade-long rule by the Bharat Rashtra Samithi (BRS), the party led by his father, K Chandrashekar Rao.

On November 7, Mr. Rao expressed willingness to cooperate with any investigations, stating, "It is the governor's discretion. I have no objection if the governor gives permission for prosecution. We welcome it. We are ready for any inquiry." His remarks indicate a readiness to confront the allegations head-on.

Earlier in October, the Anti-Corruption Bureau had sought approval from Telangana Governor Jishnu Dev Varma to probe Mr. Rao in connection with the Formula E incident. According to sources, Arvind Kumar, who previously served as the principal secretary for Municipal Administration and Urban Development, acknowledged that the ₹55 crore was transferred to the event organizers at the direction of the former minister, who oversaw that particular government portfolio.

The allegations surrounding this transaction highlight several irregularities. The funds were reportedly transferred without cabinet approval and were disbursed after election notifications were issued in Telangana, raising concerns about compliance with Election Commission guidelines. Furthermore, it has been claimed that the payment was made in pounds without obtaining clearance from the Reserve Bank of India.

KT Rama Rao, often referred to as KTR, previously held the Industry portfolio during the administration of his father, K Chandrashekar Rao. In 2022, a tripartite agreement was established between the Municipal Administration and Urban Development department, the Formula E organizers (FEO), and Ace Nxt Gen Pvt limited to facilitate the upcoming seasons of the Formula E race. The ninth season occurred in Hyderabad on February 10 and 11, 2023, with the subsequent season expected to be held in February 2024.

However, complications arose when Ace Nxt Gen withdrew from the agreement, citing financial losses. Subsequently, despite the withdrawal, the FEO expressed interest in proceeding with the next season. In light of this, Arvind Kumar executed the transfer of ₹55 crore, which included ₹9 crore allocated as taxes, purportedly following verbal orders from Mr. Rao.

After the Congress party assumed power, the Formula E organizers opted out of the forthcoming race, leading to the cancellation of the event scheduled for February. The unfolding of these circumstances has intensified scrutiny and discussion regarding governance, accountability, and transparency in public financial transactions.