The case against working president of Bharat Rashtra Samithi (BRS), former Minister for Municipal Administration and Urban Development of Telangana K.T. Rama Rao (KTR), has been of a presumed financial scam seen in conducting the Formula E race organized in February 2023 at Hyderabad. It points to unaccounted payments and procedural impropriety while KTR was in position.
Background of the Formula E Race
The Formula E racing event was an international event held in Hyderabad to put the city on the global map. This was the first time that India was hosting the electric car racing series. It was supposed to be the next step in making Hyderabad a hub for technology, innovation, and sustainable development. However, the financial and administrative decisions behind the organization of this event are now under scrutiny.
Allegations
1. Unauthorized Payments
The Hyderabad Metropolitan Development Authority (HMDA) reportedly made payments amounting to ₹45 crore in two installments to Formula E Organisers (FEO), a foreign company, to facilitate the race.The payments were allegedly made without obtaining mandatory approvals from the Telangana state cabinet and the Finance Department, a procedural violation.Critics also argue that these payments violated Reserve Bank of India (RBI) guidelines regarding foreign remittances.
2. RBI Fine
The RBI had slapped a penalty of ₹8 crore on the Telangana government for failing to comply with financial regulations, allegedly doing unauthorized transactions. The fine was paid by the Congress government that came into office in late 2023.
3. Violation of Model Code of Conduct
According to reports, another hosting agreement was inked for the same during the elections in the year 2023 when the Model Code of Conduct was already in force. It is observed that the agreement did not carry an approval from the Election Commission. So, this adds another layer of illegality to the whole proceedings.
Important persons involved
K.T. Rama Rao (KTR): He is accused of having sanctioned the payments in the absence of proper approval. Being the then MA&UD minister, KTR is also charged with a direct role in bypassing the established financial and administrative protocols.
Arvind Kumar: The then Principal Secretary of MA&UD is also involved in making the payments under the directive of KTR.B.L.N. Reddy: The former Chief Engineer of HMDA is also implicated in the case for his role in making the payments.
Legal Case
Telangana’s Anti-Corruption Bureau (ACB) lodged a case under the Prevention of Corruption Act accompanied by sections 409 Criminal breach of trust and 120B Criminal Conspiracy of the Indian Penal Code against KTR and other officers in Concerned. it was launched on having got an NOC (No Objection Certificate) from the State Governor for prosecution of the same against KTR along with others.
Defense by KTR
KTR has denied any allegations of wrongdoing. According to him, hosting the Formula E race was decided for the betterment of Hyderabad and was taken up as an activity to better the reputation of the city worldwide. He further said that the payments were made with all transparency and claimed all the administrative procedures were in place.
In a public statement, KTR has stated that it’s a politically motivated accusation where the new Congress government has managed to stage an attack against him and the party he belongs to-BRS. He has furthered that this issue must be addressed in the Telangana Legislative Assembly for making truth in public.
Political Perspective
It ignited the political clash in Telangana, with the supporters of KTR saying that this was the actual attempt towards getting attention and investment at the international level to the city of Hyderabad. As against the same, Chief Minister A. Revanth Reddy led Congress sees the case as the natural step of bringing the ex-government responsible for the so-called financial scams accountable.
Impact on wider level
The case reveals the challenge of balancing a high-profile international event with regulation and fiscal responsibility. Hosting events such as the Formula E race brings international prestige and possible economic opportunities, but this calls for transparency and following rules.
The investigation by the ACB will say whether there was a violation of financial and procedural norms or if the allegations are part of a larger political agenda. The outcome may well determine the fate of KTR’s political career and BRS’s image in Telangana politics.
