The Telangana Anti-Corruption Bureau (ACB) has filed an FIR accusing the Bharat Rashtra Samiti (BRS)’s working president K T Rama Rao or KTR of alleged financial irregularities in bringing the Formula E racing event to Hyderabad in February 2023.
While KTR was named the prime accused, former Municipal Administration and Urban Development (MAUD) principal secretary Arvind Kumar was named the second accused and former Hyderabad Metropolitan Development Authority (HMDA) chief engineer B L N Reddy the third accused in the case.
What is the case against KTR?
The case is related to alleged mismanagement of funds and payments made during the previous BRS government, led by K Chandrasekhar Rao or KCR, when KTR was the Minister for MAUD, which had worked towards bringing the Formula E race to the capital city, Hyderabad.
The Hyderabad E-Prix was the first such event held in India for the international electric car racing series. So far, just one Formula E event has been held in Hyderabad – in 2023. The 2024 race was cancelled after the MAUD decided not to fulfil its ‘Host City Agreement’ after a new government came to power in the Assembly polls last year.
The main allegation against KTR, son of ex-chief minister KCR, is that he allegedly did not seek the necessary approvals from the Cabinet or the Finance Department in authorising the transfer of Rs 45 crore from the HMDA to a foreign entity.
The money transfers, in British pounds, violated the rules of the Reserve Bank of India (RBI), which fined the Telangana government Rs 8 crore, an amount paid by the incumbent Congress government that ordered an inquiry, leading to the ACB case against KTR, Kumar, and Reddy.
The FIR was registered under the Prevention of Corruption Act as well as under Indian Penal Code (IPC) sections 409 (criminal breach of trust) and 120B (criminal conspiracy).
The case was filed after Governor Jishnu Dev Varma gave sanction to prosecute KTR.
What is KTR’s response to the charges?
KTR has maintained that the payments from the HMDA were properly authorised, claiming that there were no financial irregularities in organising the race.
Last Wednesday, a few hours after the case was filed, KTR wrote a letter to CM A Revanth Reddy, saying the Formula E case should be discussed in the Assembly so that the people of Telangana get to know what “actually happened”, adding the decision to host the race was intended to promote the Hyderabad’s image globally.
Regarding the allegation that he did not seek the necessary approvals, KTR said that he gave the instructions authorising payments as the vice-president of the HMDA. The HMDA operates independently and does not need approval from the Finance Department or Cabinet, he said.
How has BRS reacted?
After the case was filed, there was outrage in the BRS with its senior leaders accusing the Congress government of allegedly trying to “defame” KTR. Former BRS minister T Harish Rao alleged that the CM was desperate to malign KTR and foist the ACB case against him. Senior BRS leader Dr Dasoju Sravan slammed CM Reddy, saying it was a “desperate and malicious attempt” to frame KTR with false charges over the Formula E race. Sravan alleged the case was a vindictive misuse of power, driven by a regressive mindset, to cover up Reddy’s “own failures and incompetence”.
“Revanth Reddy’s baseless allegations against Shri KTR are rooted in sheer malice and have no factual basis. This is nothing but a political smear campaign designed to mislead the people and distract from his own inability to deliver. KTR has always acted with integrity and worked tirelessly to uphold the government’s contractual obligations while championing the EV manufacturing sector in Telangana,” Sravan said.
BRS MLAs protested inside and outside the Telangana Assembly on Friday, disrupting the proceedings while demanding a discussion on the allegations against KTR. “If the government has sincerity and courage, let us have an open discussion. Let the facts come out,” Harish Rao said.
What could be the row’s impact on BRS?
The case comes as a big blow for the BRS given that KTR is one of its most prominent and senior leaders. With BRS supremo KCR taking a back seat after the defeat in the Assembly polls last year, KTR has been at the helm of the party. Legal troubles will take up a lot of his time away from the party. His sister and BRS leader K Kavitha is also facing Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) cases in the Delhi liquor scam, and was released from jail in August.
But KTR has already begun preparing his next move. On Friday, he approached the Telangana High Court seeking orders to quash the ACB case against him. The court has granted KTR interim protection from arrest until December 30, with his quash petition scheduled to be heard on December 27.
On Friday, the ED also said it is in the process of registering a case against KTR based on the ACB’s case.
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