KCR Family Faces Corruption Probes: A Deep Dive into Political Developments in Telangana

Hyderabad: The political landscape in Telangana is witnessing seismic shifts a year after the Bharat Rashtra Samithi (BRS) lost power. With multiple investigations launched against key figures of the KCR family, the political fireworks predicted by senior Telangana leaders are now a reality.

The Anti-Corruption Bureau (ACB) and the Enforcement Directorate (ED) have initiated probes against BRS Working President and former Telangana Minister K.T. Rama Rao (KTR). The allegations involve irregularities in organizing the Formula-E car race in Hyderabad in 2022 when the BRS was in power.

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Prosecution Approved: Governor Greenlights Action Against KTR

Governor Jishnu Dev Varma recently granted permission to prosecute KTR, paving the way for the ACB to register an FIR. The FIR was lodged under Sections 13(1)(A) and 13(2) of the Prevention of Corruption Act, and Sections 409 and 120(B) of the Indian Penal Code, with KTR listed as the prime accused. Other accused include senior IAS officer Arvind Kumar and former Hyderabad Metropolitan Development Authority (HMDA) Chief Engineer BLN Reddy.

The FIR centers on the alleged misuse of over ₹54.88 crore transferred to UK-based Formula-E Operations Limited (FEO) and others. The funds were reportedly paid in violation of procedural norms.

KTR Denies Allegations, Labels Case as Political Vendetta

Denying corruption charges, KTR stated that the Formula-E race aimed to establish Telangana as a hub for electric vehicles. He termed the case a “political vendetta” and challenged the ruling Congress government to debate the issue in the state Assembly. However, the Congress government refused, citing the ongoing investigation.

KTR has also sought legal recourse by petitioning the High Court to quash the FIR. While the High Court barred his arrest until the end of December, the ED registered a separate Enforcement Case Information Report (ECIR) under the Prevention of Money Laundering Act (PMLA).

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ED Probes Financial Mismanagement and FEMA Violations

The ED’s investigation extends to possible violations under the Foreign Exchange Management Act (FEMA). The agency is examining financial commitments exceeding ₹600 crore for upcoming Formula-E race seasons. Allegations suggest HMDA transferred funds despite not being a direct party to the agreement.

Both Arvind Kumar and BLN Reddy have been summoned by the ED for questioning in early January. The ED’s dual investigations under PMLA and FEMA are scrutinizing the financial and legal protocols allegedly violated in organizing the event.

Also Read | ED Summons BRS Leader KTR in Money Laundering Case

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Revanth Reddy Claims Massive Savings

Telangana Chief Minister A. Revanth Reddy argued that his government saved over ₹500 crore by refusing additional payments for the Formula-E race. According to him, the previous BRS government had committed to transferring over ₹600 crore to FEO, an agreement he refused to honor after assuming office in December 2023.

In a counterattack, KTR released photographs of Revanth Reddy meeting FEO co-founder Albert Longo. The Chief Minister clarified that FEO representatives approached him early in his tenure, but he rejected their financial demands, labeling them unnecessary and fiscally irresponsible.

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ACB and ED Extend Focus to Other Alleged Scams

This corruption case marks the first filed against the family of former Chief Minister K. Chandrasekhar Rao (KCR) since the Congress party’s rise to power. However, it’s not the first investigation involving the family. In March, KCR’s daughter K. Kavitha was arrested by the ED in connection with the Delhi excise policy scam and spent over five months in judicial custody before securing bail from the Supreme Court.

Adding to the KCR family’s woes, the Justice Ghose Commission is reportedly investigating alleged irregularities in the Kaleshwaram Lift Irrigation Project. The Commission has summoned KCR, his son KTR, and his nephew, former State Irrigation Minister T. Harish Rao, to record their statements on cost escalations and substandard maintenance of the project’s barrages.

Judicial Inquiries into Power Projects and Agreements

Shortly after assuming office, Chief Minister Revanth Reddy ordered judicial inquiries into various alleged scams under the previous BRS regime. These include irregularities in:

• Kaleshwaram Project: Accusations of cost inflation and poor maintenance.
• Bhadradri and Yadadri Thermal Power Projects: Faults in execution and contracts.
• Power Purchase Agreement with Chhattisgarh: Alleged financial discrepancies.

While the Commission of Inquiry headed by Justice M.B. Lokur submitted its findings on thermal projects in October, the report remains unpublished. Sources suggest it highlights flaws in decision-making and execution by the previous administration.

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Political Fallout and Future Implications

The corruption allegations against the KCR family signal a turbulent political phase in Telangana. BRS leaders claim these investigations are part of a Congress-led vendetta, while the ruling government insists on accountability for past misdeeds.

As probes intensify, the KCR family faces mounting legal challenges that could redefine Telangana’s political dynamics. The upcoming months promise significant developments as investigative agencies and judicial bodies conclude their findings.