Hyderabad: The state cabinet on Monday directed Chief Secretary A Santi Kumari to send a letter to the director general of the Anti-Corruption Bureau (ACB) to investigate the alleged irregularities of Rs 55 crore against BRS executive president KT Rama Rao. Formula E car race has been held in Hyderabad.
The chief secretary is expected to write to the ACB director general on Tuesday, after which a case will be registered against Rama Rao, and summons will be issued to him to appear before the ACB for investigation of alleged financial irregularities in Sutra. E race scam.
This development prompted Governor Jishnu Dev Verma to approve the trial of Rama Rao on December 12. The state government asked for his permission on November 8.
Chief Minister of the state A. The state cabinet, headed by Revanth Reddy, decided to prosecute Rama Rao, which met in the Legislative Assembly’s committee hall on Monday.
In an informal interaction with the media after the Cabinet meeting, Revenue and I&PR Minister Panguleti Srinivasa Reddy said the Cabinet discussed in detail the Formula E race scam and the Governor’s approval for a probe against Rama Rao.
Srinivasa Reddy revealed that the allegations involved illegal transfer of Rs 55 crore from Hyderabad Metropolitan Development Authority (HMDA) funds to the Formula E race organizers without obtaining necessary approval from the state government or competent authorities.
The minister added that the state government has already approved an ACB probe into the role of the then MAUD secretary Arvind Kumar in transferring the funds on verbal instructions of the then municipal administration and urban development (MAUD) minister Rama Rao.
“After the governor gave his nod, the state cabinet directed the chief secretary to immediately write to the ACB to initiate an inquiry into the Formula E race case against KT Rama Rao,” Srinivasa Reddy said.
He added that the ACB is expected to inform organizations associated with the Formula E race, including Greenco, Ace Nxt Gen, Mahindra Racing, and Jaguar TCS Racing.
Srinivasa Reddy clarified that the state government does not hold any personal grudge against anyone and asserted that “the law will take its own course”.
Responding to threats by some BRS leaders, who claimed that Telangana would become an ‘Agnigundam’ (pit of fire) if Rama Rao was arrested, Ponguleti remarked, “This shows their arrogance. How can the state become an Agnigundam if someone is arrested?
The Formula E car race was organized during the tenure of the previous BRS government in February 2023 with an investment of 200 crores. After the Congress government assumed office in December 2023, allegations of financial misappropriation surfaced. The MAUD department lodged a complaint with the ACB highlighting massive mismanagement of funds.
The ACB’s request for a probe included the then MAUD secretary Arvind Kumar and the former chief engineer of HMDA. When the state government sanctioned the inquiry against these officials, Rama Rao, as the people’s representative, sent a request to the governor for approval.
Revanth Reddy reiterated the government’s commitment to ensure a thorough and legally sound investigation. “Since the courts mandate prior approval from the governor to take action against public representatives, we want to ensure that the investigation complies with legal scrutiny,” the source said.
According to the MAUD complaint, Arvind Kumar, in his capacity as HMDA Commissioner, authorized a payment of Rs 55 crore to Formula E Operations (FEO) without statutory approval.
The file notes allegedly indicated that Arvind Kumar acted on the verbal instructions of Rama Rao.
In a recent statement, Rama Rao admitted issuing these instructions but defended the decision as a move to boost Hyderabad’s global image. However, officials claim that this action violates established financial norms.
The allegations emerged in relation to a second agreement signed in October 2023 to host the next Formula E race in February 2024. The deal allegedly bypassed the approval of the Election Commission and the Finance Department, thereby violating the Election Code of Conduct (MCC).
The state cabinet meeting also approved the new Revenue Act (Record of Rights – ROR Act). Ponguleti announced that the state government will introduce a bill related to the new ROR Act in the ongoing winter session of the Legislative Parliament.