Hyderabad: KT Rama Rao, the working president of the Bharat Rashtra Samithi (BRS) and a sitting MLA, may face arrest soon. Reports suggest that Governor Jishnu Dev Varma has approved the state government’s request to prosecute KTR in connection with the Formula E race scam.
The Anti-Corruption Bureau (ACB) has been investigating the case and sought legal advice before filing charges. KTR, in his role as the Municipal Administration & Urban Development (MA&UD) minister, allegedly approved the release of Rs 50 crore to a private racing company for hosting the Formula E car racing competition in Hyderabad.
Initial findings indicate that the Rs 50 crore was misused, as the funds were released directly to the agency without obtaining approval from the state Finance Department. Former MA&UD Secretary Arvind Kumar reportedly admitted that the funds were disbursed under KTR’s instructions. After coming to power, the Congress government canceled the agreement made between the previous administration and the racing agency.
The ACB recently accelerated its investigation after a new complaint was filed by the MA&UD department. The probe centers on the Rs 200 crore Formula E racing project, which included the construction of a specialized track near Hussain Sagar Lake for the event held in February last year.
According to the ACB, the project involved significant expenditures: Greenco spent Rs 150 crore, Hyderabad Racing Limited spent Rs 30 crore, and the Hyderabad Metropolitan Development Authority (HMDA) contributed Rs 20 crore to develop the track and related infrastructure. Additionally, the MA&UD department signed an agreement with Formula E Operations (FEO) in October 2023 to host another race on February 10, 2024, for which the HMDA paid Rs 55 crore.
Officials claim the ACB has gathered substantial evidence against KTR. With the Governor’s approval, the government is expected to move forward with filing charges and prosecuting the former minister.
