Hyderabad: The Telangana Anti-Corruption Bureau (ACB) on Thursday, December 19 filed an FIR against Bharat Rashtra Samiti (BRS) working president KT Rama Rao (KTR), IAS officer Arvind Kumar, and others in connection with the alleged Formula E race scam.
Following a letter from the chief secretary, authorities are investigating alleged irregularities in organizing the Formula E race held in Hyderabad in 2023. The Hyderabad Metropolitan Development Authority (HMDA) reportedly paid Rs 45 crores to the foreign company Formula E Operations (FEO) violating RBI guidelines.
A case has been registered under sections 13 (1) A, 13 (2) PC Act, 409, 120 B. ACB is now set to question former MAUD minister, KTR and senior IAS officer Arvind Kumar regarding the case.
Ongoing debacle of the Formula E race ‘scam’ in Hyderabad
After the Congress party assumed power in Telangana, it was revealed that the previous BRS government spent Rs 54 crores including Rs 8 crores in taxes on Formula E, the organizers of Formula E Season 10 in Hyderabad without Cabinet approval. A memo was issued to IAS officer Arvind Kumar, questioning the authorization for this transaction.
Congress also alleged that Rs 55 crores were spent on the event and raised concerns over inaction against Ace Nxt Gen, a Greenko subsidiary, for defaulting and withdrawing from the event. This led to the cancellation of the 2024 Formula E race in Hyderabad initially scheduled for February with organizers citing a “breach of contract.”
With the failure to retain the Formula-E race, KTR slammed the Congress government calling the decision “poor and regressive”.
During a Cabinet meeting on December 16, a decision was made to advance the inquiry into KTR and the alleged irregularities.
Telangana Guv gives nod to probe KTR
The Telangana government wrote to Governor Jishnu Dev Varma seeking permission to register an FIR against KTR. The governor took time to respond and subsequently gave a nod to the file.
According to several local media reports, the Anti-Corruption Bureau (ACB) had written to the Governor last month, seeking his nod to investigate KTR. With the Governor giving a go-ahead, all eyes are on ACB about what their next move could be.
Elaborating further, the minister for revenue Ponguleti Srinivasa Reddy said that Governor Jishnu Dev Varma had approved the inquiry into the Formula-E car race in Hyderabad and gave clearance to the State government.
KTR dares Telangana CM for debate on Formula E race in Assembly
KTR on Wednesday, December 18, dared Telangana chief minister A Revanth Reddy to initiate discussion on the Formula E-race issue in the State Assembly.
Denying any irregularities or corruption in the Formula E race, the former minister in a letter to the chief minister demanded discussion over it.
Stating that the event brought goodwill to the state and Hyderabad city, he alleged that the event was sacrificed purely due to political vendetta. He believes that a detailed discussion in the Assembly will reveal the truth to everyone.
BRS Legislature Party also wrote to Speaker Gaddam Prasad Kumar, seeking a debate on the Formula E race in the House.
KTR, in his letter to the Chief Minister, wrote that his government has been making several baseless allegations against “the previous BRS government, especially against me, for several months regarding the Formula E race issue.”.
Formula E race event in Hyderabad
The Formula E race was held on February 11 of last year around Hussain Sagar in Hyderabad, attracting fans from across the country. Following the success of this event, MAUD entered into an agreement with FEO for another race scheduled for February 10, 2024.
The Hyderabad Metropolitan Development Authority (HMDA) paid Rs 55 crores to FEO as part of this agreement which was established during the tenure of the Bharat Rashtra Samithi (BRS) government.
However, FEO announced its withdrawal from hosting the race last December, citing non-compliance with the terms outlined in their agreement. At the time of the agreement, BRS was in power, while Congress was in control when FEO decided to cancel.
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