FIR Filed Against KTR
In a significant development, Telangana’s Anti-Corruption Bureau (ACB) has filed a First Information Report (FIR) against K T Rama Rao (KTR), the working president of Bharat Rashtra Samithi (BRS) and son of former chief minister K Chandrashekar Rao. The case revolves around alleged financial irregularities in organizing the Formula E car race event in Hyderabad in February 2023.
Allegations and Key Accused
The FIR names KTR as the primary accused, followed by Arvind Kumar, the former principal secretary of the Municipal Administration and Urban Development (MAUD) department, and BLN Reddy, the former chief engineer of the Hyderabad Metropolitan Development Authority (HMDA). The allegations center on unauthorized financial transactions, mismanagement of funds, and violations of Reserve Bank of India (RBI) guidelines.
According to the ACB, payments amounting to ₹46 crore were made in two installments to Formula E Organisers (FEO), a foreign company, without necessary Cabinet approvals. Additionally, the RBI imposed a fine of ₹8 crore on the Telangana government for these unauthorized transactions. The penalty was later paid by the newly elected Congress government after it assumed power in December 2023.
Context and Discovery of Irregularities
The alleged violations came to light after the new Congress government launched an investigation into the reasons behind the RBI fine. The inquiry revealed discrepancies in the conduct of the Formula E event, prompting the ACB to initiate its probe. The FIR accuses KTR of bypassing Cabinet approval and authorizing payments directly through Arvind Kumar.
One of the primary allegations is that funds were transferred to individuals and entities unrelated to the event. Furthermore, the second agreement to host the race was reportedly executed without obtaining clearance from the Election Commission, as the Model Code of Conduct was in force during that time.
Background of the Formula E Race
The ninth season of the Formula E championship was held in Hyderabad on February 10 and 11, 2023, as part of an agreement between the Telangana government, Greenko, and Ace Nxt Gen Pvt Ltd. However, Ace Nxt Gen reportedly opted out after the ninth season due to financial losses. Subsequently, the HMDA transferred ₹45 crore to FEO for the 10th season, which is now under scrutiny.
The tripartite agreement aimed to enhance Hyderabad’s global reputation by hosting a prestigious motorsport event. Despite competing with cities like Seoul and Cape Town, Telangana secured the rights to host the race. However, critics allege that financial mismanagement overshadowed the initiative’s intent.
KTR’s Defense and Response
Reacting to the allegations, KTR has categorically denied any wrongdoing. He emphasized that the decision to host the race was made to elevate Hyderabad’s global image. “Nothing was done illegally. If any illegality is found, I am ready to go to jail,” he stated. KTR also highlighted that the HMDA operates autonomously and does not require Cabinet or Finance Department approval for such transactions.
In a letter addressed to Chief Minister A Revanth Reddy, KTR requested a discussion on the matter in the Legislative Assembly to provide transparency and clarity to the public. He argued that all decisions were made in the best interests of Hyderabad and its citizens.
Political Repercussions
The case has intensified the political rivalry between the Congress government and the BRS. Since coming to power, Chief Minister Revanth Reddy has consistently alleged corruption in the previous BRS administration. The Formula E controversy has become a focal point for the Congress to target KTR and the BRS.
Senior BRS leader and former minister T Harish Rao defended KTR, claiming that the allegations are politically motivated. He argued that KTR is being unfairly targeted for his efforts to position Hyderabad on the global stage.
Details from the FIR
The FIR, filed under the Prevention of Corruption Act and relevant sections of the Indian Penal Code (IPC), alleges criminal breach of trust (Section 409) and criminal conspiracy (Section 120B). The ACB stated that Arvind Kumar authorized the transfer of funds to FEO on KTR’s instructions, even though the Model Code of Conduct was in place at the time.
According to the FIR, Arvind Kumar justified the payments as being approved by the then MAUD minister, KTR. However, the lack of Cabinet approval and the timing of the transactions have raised serious questions about the legality of these decisions.
Fallout and Next Steps
The controversy has sparked a heated debate about governance, transparency, and accountability in Telangana. With the FIR now registered, the ACB’s investigation will delve deeper into the financial dealings and decision-making processes involved in hosting the Formula E race.
KTR’s political future could be at stake as the case unfolds. While he has expressed willingness to cooperate with the investigation, the allegations have provided ammunition for his political opponents.
Public Reaction
The Formula E race was initially hailed as a landmark event for Hyderabad, showcasing the city’s potential to host international sporting events. However, the emerging allegations have overshadowed the achievements, leaving many citizens disillusioned.
Some view the case as a politically motivated attack, while others believe it underscores the need for greater transparency in public spending. The issue has also reignited discussions about accountability in large-scale government projects.
Conclusion
As the ACB’s investigation progresses, all eyes will be on the evidence it uncovers and the subsequent legal proceedings. The case not only poses challenges for KTR and the BRS but also serves as a litmus test for the Congress government’s commitment to rooting out corruption.
The Formula E controversy has opened a Pandora’s box, raising critical questions about governance, fiscal responsibility, and the ethical dimensions of public administration. The coming weeks are likely to witness intense political and legal drama as the case moves forward.
