The Anti-Corruption Bureau (ACB) has filed a First Information Report (FIR) against KT Rama Rao (KTR), the working president of Telangana's Bharat Rashtra Samithi (BRS) and a Member of the Legislative Assembly (MLA), accusing him of financial irregularities in hosting the Formula-E race during the BRS-led administration. The allegations have sparked significant political and legal controversy in the state, with KTR and his party strongly denying any wrongdoing and framing the case as politically motivated.
The FIR identifies KTR as the primary accused, followed by former Municipal Administration and Urban Development (MAUD) Principal Secretary Arvind Kumar and former Hyderabad Metropolitan Development Authority (HMDA) Chief Engineer BLN Reddy as the second and third accused, respectively. At the heart of the allegations is the claim that the BRS leader approved payments to the Formula-E Organisers (FOE), a foreign entity, without obtaining the required clearance from the state Cabinet. The FIR states that the HMDA transferred Rs 45 crore to the FOE in two installments, an action allegedly in violation of Reserve Bank of India (RBI) guidelines. This breach reportedly resulted in the RBI imposing a hefty penalty of Rs 8 crore on the Telangana government, a fine that was later paid by the Congress government after it assumed office in December 2023.
KTR, who is the son of former Chief Minister K Chandrashekhar Rao, was serving as the Municipal Administration Minister during the BRS regime and played a key role in bringing the Formula-E race to Hyderabad. The event, held last year, was touted as a milestone that would elevate Hyderabad’s profile on the global motorsport stage and attract international investment and tourism to the state. However, the controversy intensified after the second race, scheduled for February 2024, was abruptly canceled by the newly elected Congress government.
The charges leveled by the ACB include fund mismanagement, breach of trust, and violations of the Prevention of Corruption Act. The FIR alleges that the payments made to the FOE were unauthorized and lacked the necessary procedural and administrative approvals, raising questions about transparency and accountability in the allocation and utilization of public funds.
In response to the FIR, KTR has vowed to fight the allegations legally, asserting his confidence in the judiciary and dismissing the case as baseless. He argued that the event was organized with the state’s best interests in mind and was part of a broader effort to project Telangana as a hub for international events. The BRS has also come out in his defense, accusing the Congress government of engaging in political vendettas to tarnish the reputation of the BRS and its leadership. The party stated that the Formula-E race was a visionary initiative designed to foster economic growth, showcase Telangana’s technological prowess, and enhance its global standing.
The Congress government, on the other hand, has maintained that the alleged financial irregularities reflect a pattern of mismanagement and misuse of power during the BRS administration. Political analysts believe that the issue could escalate into a larger political battle, with the Congress using the allegations as ammunition to question the governance record of the BRS, particularly in the run-up to upcoming elections.
The ACB investigation has added a new dimension to the political rivalry between the Congress and the BRS in Telangana, with both parties trading accusations over their respective roles in governance and development. As the probe progresses, it is likely to raise broader questions about the handling of large-scale events and the mechanisms in place to ensure financial accountability in government projects. Observers are closely watching how the legal proceedings unfold, as the case could have far-reaching implications for the state’s political landscape and governance norms.
