Hyderabad: Telangana Governor Jishnu Dev Varma has given the go-ahead to the Anti-Corruption Bureau (ACB) to take legal action against former minister K. T. Rama Rao (KTR) in connection with the Formula-E car race case, which involves suspected misappropriation of ₹54.88 crore in public funds. However, the police officials have not yet made an official statement regarding this matter.
This case stems from a complaint lodged on October 18, 2024, by M. Dana Kishore, Principal Secretary of the Municipal Administration and Urban Development (MA&UD) department.
In the complaint, he accused the Hyderabad Metropolitan Development Authority (HMDA) of causing a loss of ₹54.88 crore to the state treasury by making payments to Formula-E Operations Limited (FEO) without obtaining the necessary approvals from the Cabinet or the Finance department. The complaint was submitted after the Congress party assumed power.
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On December 19, 2024, the ACB initiated a case against K.T. Rama Rao, the former special chief secretary to MA&UD Arvind Kumar, and B. L. N. Reddy, the former Chief Engineer of HMDA. According to the FIR, a total of ₹45.7 crore was transferred to FEO between September and October 2023, despite the termination of the company’s agreement with the Telangana government. Investigators mentioned that this transaction imposed an additional tax burden of ₹8.06 crore on the HMDA.
The ACB also pointed out that a tripartite agreement made in October 2022 among the Telangana government, FEO, and event sponsor Ace Nxt Gen Pvt. Ltd. had limited the government’s financial liability. However, conflicts between FEO and Ace Nxt Gen reportedly prompted the State to take on financial obligations without regulatory authorisation, ultimately leading to considerable financial losses.
KT Rama Rao faces allegations of improperly utilising government funds and misusing his power during his tenure as the Minister for Municipal Administration and Urban Development.
Sources indicate that Jishnu Dev Varma has approved an inquiry, and anti-corruption officials are expected to accelerate the pace and intensity of their investigation into the BRS working president.