Hyderabad: Chief Minister A Revanth Reddy is speeding up an investigation into an alleged scam involving the Formula E race. The goal is to ensure transparency in sports management.
The Municipal Administration and Urban Development (MAUD) department has filed a new complaint with the Anti-Corruption Bureau (ACB). They have requested the investigation be accelerated. The investigation focuses on allegations that the previous BRS government misused Rs 200 crore meant for the Formula E race in Hyderabad. This money was reportedly spent without proper approval from the state Cabinet. At the time, K T Rama Rao, the working president of the BRS party, was serving as the MAUD Minister.
Officials claim that Rs 50 crore was released from the state treasury without Cabinet approval, which was against the rules. This money went to the agency that organized the race. Normally, the Finance Department’s approval is required before making such payments, but that process was bypassed. The race took place around Hussain Sagar in 2023.
The event was funded by multiple sources. Promoter GreenKo spent Rs 150 crore, Hyderabad Racing Limited contributed Rs 30 crore, and the Hyderabad Metropolitan Development Authority (HMDA) spent Rs 20 crore to improve the road track and other infrastructure.
In October 2023, MAUD officials signed an agreement with Formula-E Operation (FEO) to organize another race on February 10, 2024. HMDA paid Rs 55 crore for this. However, the event was cancelled later.
After the Congress government came to power in December 2023, Chief Minister Revanth Reddy ordered a probe into the misuse of public funds for the race. The investigation revealed that the Rs 50 crore was released on the instructions of K T Rama Rao. The Chief Minister assured that once the investigation is complete, the government will take legal action based on the findings.
