Telangana’s Anti-Corruption Bureau (ACB) filed a case on Thursday against Bharat Rashtra Samithi (BRS) working president and former minister K.T. Rama Rao (KTR), son of former chief minister K. Chandrashekar Rao, over alleged irregularities in bringing the Formula E car racing event to Hyderabad in February last year.
The case names KTR as the primary accused, with former Municipal Administration and Urban Development (MAUD) principal secretary Arvind Kumar listed as the second accused and former Hyderabad Metropolitan Development Authority (HMDA) chief engineer B.L.N. Reddy as the third accused. The allegations pertain to financial mismanagement and payments made when KTR served as the state’s MAUD minister, spearheading efforts to bring the Formula E race to Hyderabad.
According to the FIR, KTR authorized payments without Cabinet clearance, enabling Arvind Kumar to proceed with the transactions. The ACB alleged that HMDA transferred ₹45 crore in two installments to the Formula E Organisers (FEO), violating RBI guidelines. The RBI subsequently imposed an ₹8 crore fine on the Telangana government for unauthorized transactions, which was later paid by the Congress government after it assumed power late last year. The FIR stated that an investigation into the RBI fine uncovered financial irregularities in organizing the event, prompting the ACB to launch its probe.
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The FIR was filed under the Prevention of Corruption Act and IPC sections 409 (criminal breach of trust) and 120B (criminal conspiracy). The case was initiated after Governor Jishnu Dev Varma granted permission to prosecute KTR.
On Wednesday, KTR wrote to Chief Minister A. Revanth Reddy, suggesting that the Formula E case be discussed in the Legislative Assembly to inform the people of Telangana about what “actually happened.” After assuming office in December 2023, CM Revanth Reddy and Congress ministers alleged corruption in organizing the Formula E race.
“One main allegation is that K.T. Rama Rao did not seek the necessary approvals from the Cabinet. The money was transferred to accounts of individuals and entities, including one foreign firm, not connected with organizing the race. Telangana Assembly elections had been announced, and the Model Code of Conduct was in force. The second agreement to hold the race was made without the permission of the Election Commission,” an official said.
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KTR denied any wrongdoing, stating that the decision to host the race aimed to promote Hyderabad globally. Late in 2022, the Municipal Administration signed an agreement with FEO and Ace Nxt Gen Pvt Ltd to host Formula E seasons 9 through 12. The ninth season took place in Hyderabad on February 10–11, 2023. According to the ACB, Ace Nxt Gen withdrew after the ninth season. However, when FEO expressed interest in continuing with the 10th season, Arvind Kumar authorized transferring ₹45 crore to FEO in Pounds Sterling.
The FIR highlighted that Arvind Kumar, in response to a notice from the Congress government, stated that he authorized the transfers based on approval from the competent authority, which he identified as then MAUD minister KTR.
Senior BRS leader and former minister T. Harish Rao criticized the FIR, claiming KTR was being targeted for enhancing Hyderabad’s global image.
On the allegations, KTR maintained that all actions were legal. “I am willing to go to jail if anything illegal is found. I will use the jail time to stay fit and plan a padayatra,” he said. KTR explained that the BRS government competed with cities like Seoul and Cape Town to host the race. He added that while a tripartite agreement was made between the state government, Greenko, and Ace Nxt Gen for the ninth season, Ace withdrew for the next season due to losses. Upon learning this, KTR instructed HMDA commissioner Kumar to transfer funds to FEO while searching for other sponsors. “I gave the instructions as vice-president of HMDA. The HMDA operates independently and does not need approval from the Finance Department or Cabinet,” he said.
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