The Telangana Anti-Corruption Bureau (ACB) has filed an FIR against Bharat Rashtra Samithi (BRS) executive president KT Rama Rao or KTR alleging financial irregularities in bringing the Formula E racing event to Hyderabad in February 2023.
While KTR was named as the main accusedFormer Municipal Administration and Urban Development (MAUD) Principal Secretary Arvind Kumar was the second accused and former Hyderabad Metropolitan Development Authority (HMDA) chief engineer BLN Reddy was the third accused in the case.
What is the case against the girl?
The case relates to the alleged misappropriation of funds and payments made during the previous BRS government led by K Chandrasekhar Rao or KCR when KTR was MAUD minister, which worked towards bringing the Formula E race to the capital Hyderabad.
The Hyderabad E-Prix was held for the first time in India for an international electric car racing series. So far, only one Formula E event has been held in Hyderabad in 2023. The 2024 race was canceled after the MAUD decided not to fulfill its ‘host city agreement’ after the new government came to power in the assembly elections last year.
The main allegation against former Chief Minister KCR’s son KTR is that he did not take necessary approval from the Cabinet or the Finance Department to transfer Rs 45 crore from HMDA to a foreign institution.
The transfer of money in British pounds violated Reserve Bank of India (RBI) rules, which fined the Telangana government Rs 8 crore, the amount paid by the current Congress government that led to an ACB case against KTR. , Kumar and Reddy.
The FIR was registered under Indian Penal Code (IPC) sections 409 (criminal breach of trust) and 120B (criminal conspiracy) under the Prevention of Corruption Act.
The case was filed after Governor Jishnu Dev Verma gave permission to KTR to prosecute the case.
What is KTR’s response to the allegations?
KTR claimed that there was no financial irregularity while organizing the race and claimed that the payments from HMDA were duly authorized.
Last Wednesday, hours after the case was filed, KTR wrote to CM A Revanth Reddy, saying the Sutra E case should be discussed in the assembly so that the people of Telangana know “what really happened”. It has been decided to organize the race with the aim of promoting the image of Hyderabad all over the world.
Referring to allegations that he did not seek necessary approvals, KTR said that he had given instructions to authorize the payment as the vice-chairman of HMDA. HMDA operates independently and does not require the approval of the Finance Department or the Cabinet, he said.
How did BRS react?
After the case was filed, the BRS was furious 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 keen to defame KTR and file an ACB case against him. Senior BRS leader Dr Dasoju Shravan slammed CM Reddy, saying it was a “desperate and malicious attempt” to falsely accuse KTR of Formula E racing. Shravan alleged that the case was Reddy’s vindictive abuse of power driven by a reactionary mindset to cover up his “own failures and incompetence”.
“The baseless allegations of Mr. KTR against Revanth Reddy are based on sheer malice and have no factual basis. This is nothing but a political smokescreen to mislead the public and distract them from their own inability to deliver. KTR has always acted with integrity and championed the EV manufacturing sector in Telangana. It has worked tirelessly to uphold the government’s contractual obligations,” Shravan said.
BRS MLAs protested inside and outside the Telangana Assembly on Friday, disrupting proceedings demanding a discussion on the allegations against KTR. ‘If the government has honesty and courage, let’s have an open discussion. Let the facts come out,’ said Harish Rao.
What would be the effect of rows on BRS?
The case comes as a major blow to BRS as KTR is one of its most prominent and senior leaders. After BRS supremo KCR took a back seat following his defeat in the assembly elections last year, KTR was at the helm of the party. Legal problems will keep him away from the party for a long time. His sister and BRS leader K Kavita 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 started preparing for his next move. On Friday, he moved the Telangana High Court seeking an order to quash the ACB case against him. The court granted KTR interim protection from arrest till December 30, with his quashing petition scheduled for hearing on December 27.
On Friday, the ED also said it is in the process of registering a case against KTR based on the ACB case.
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