Hyderabad: The Formula E race controversy escalates as the Telangana government prepares to take legal action against former minister and executive president of BRS KT Rama Rao (KTR). Governor Jishnudev Verma has granted permission to the Anti-Corruption Bureau (ACB) to register a case and developments are expected to accelerate in the coming days.
The matter was discussed in detail at a four-hour cabinet meeting chaired by Chief Minister Revanth Reddy. The cabinet decided to formally send the Governor’s approval to the ACB, paving the way for an investigation. According to Minister Ponguleti Srinivasa Reddy, the Chief Secretary will issue orders to the ACB soon.
Key Allegations
The allegations against KTR stem from his tenure as the Municipal Administration Minister, particularly about the Formula-E race project. The violations reportedly include:
Foreign Currency Payments: Payment of Rs 46 crore in foreign currency without Reserve Bank of India (RBI) approval.
Election Code Violation: Entering into agreements while the election code was in force.
Improper HMDA Contracts: The Hyderabad Metropolitan Development Authority (HMDA) allegedly entered contracts without proper authorisation.
Delayed Agreements: Making agreements weeks after payments were already made.
The Justice Madan Lokur report also discussed in the meeting, highlighted irregularities in these transactions, including mismanagement of public funds. The report suggested a need for a deeper investigation to trace the money paid by HMDA.
Implications for KTR and Others
Along with KTR, senior officials such as Arvind Kumar, the then Special Chief Secretary of Municipal Administration and the Chief Engineer have also been implicated. The ACB has reportedly registered a case based on a complaint by the current Chief Secretary.
The Chief Minister emphasised the need for transparency and accountability, stating that the Governor had sought legal opinions from the Attorney General before granting permission, which caused the delay.
Electricity Commission Report Discussed
The cabinet also examined the Justice Madan B Lokur Commission's findings on power purchase agreements and the construction of thermal power plants in Yadadri and Bhadradri. The report pointed to significant irregularities and violations in these projects. The cabinet resolved to deliberate further before deciding on the next steps.
Political Ramifications
This case is expected to have major political repercussions, with the opposition likely to leverage it against the ruling party. The government’s move to act decisively on corruption could also shape the political narrative in the state.
