The Anti-Corruption Bureau (ACB) has filed a criminal case against BRS Working President and MLA Mr. KT Rama Rao (KTR), senior IAS officer Arvind Kumar (1991 batch), and former HMDA chief engineer Mr. BLN Reddy over alleged irregularities in the organization of the Formula E race held in Hyderabad in 2023.
The case involves a transfer of Rs. 54 crores to a foreign agency, Formula E Operations (FEO), without Cabinet approval. This includes Rs. 45 crores paid by HMDA in alleged violation of RBI guidelines and Rs. 8 crores in taxes. The investigation follows a letter from the Chief Secretary highlighting these irregularities.
After Congress assumed power in Telangana, it was alleged that the previous BRS government made unauthorized payments to FEO. The event scheduled for February 2024 was subsequently cancelled due to a breach of contract by Ace Nxt Gen, a subsidiary of Greenko, which defaulted on its commitments.
IAS Arvind Kumar, then serving as MA&UD Principal Secretary, stated that the payments were made following verbal orders from KTR, who admitted to instructing the department in the interest of the event.
The ACB has registered the case under Sections 13(1)(A) and 13(2) of the Prevention of Corruption Act, along with Sections 409 and 120(B) of the IPC. Following a Cabinet decision on December 16, the Telangana government sought Governor Jishnu Dev Varma’s permission to file an FIR against KTR, which was subsequently granted.
Revenue Minister Ponguleti Srinivasa Reddy confirmed that the Chief Secretary would send a letter to the ACB to proceed with the investigation. Meanwhile, KTR challenged Chief Minister A Revanth Reddy to discuss the issue openly in the Assembly, responding to the Cabinet’s decision to initiate the inquiry.
