K T Rama Rao
Credit: DH File Photo
Hyderabad: The Telangana Anti-Corruption Bureau (ACB), which had submitted a report to the government, has sought permission from both the Governor and the Vigilance Commission to file a chargesheet in its investigation into alleged irregularities in payments for the Formula E race conducted during the Bharat Rashtra Samithi (BRS) regime.
The case involves former Minister K T Rama Rao and senior IAS officer A Arvind Kumar as accused. Since the accused include an MLA and a senior bureaucrat, the ACB must obtain permission from the Governor and the Vigilance Commission before filing the chargesheet, as per established procedures.
The ACB had already secured the Governor's approval before initiating its inquiry nine months ago. According to sources, the ACB has uncovered crucial evidence linking the BRS to approximately Rs 40 crore in electoral bonds received from Formula E sponsors in a quid pro quo arrangement.
The investigation revealed that the Hyderabad Metropolitan Development Authority (HMDA) had transferred Rs 45 crore to the event sponsors, which included Rs 10 crore as a conversion fee. If both the Governor and the Vigilance Commission grant the required clearance, the chargesheet will be filed in court.
The FIR that was registered in December last year named KTR as the prime accused, the then Municipal Administration and Urban Development (MA & UD) Secretary, Arvind Kumar, as the second accused, and the former chief engineer of the HMDA, BLN Reddy, as the third accused.
They were booked under Sections 13(1)(A) and 13(2) of the Prevention of Corruption Act, along with Sections 409 and 120(B) of the IPC. It is alleged that Rs 55 crore, including taxes, was paid by the HMDA to the foreign company FEO in violation of RBI guidelines. The FIR also mentioned a statement by Arvind Kumar, who said he transferred the funds upon the instructions of the competent authority, the then MA & UD Minister, Rama Rao.
The payments were reportedly made without obtaining approvals from the Cabinet or the Finance Department. According to the FIR, HMDA paid Rs 55 crore in two instalments to a foreign company, Formula E Organisers (FOE), in violation of RBI guidelines. The RBI imposed a fine of Rs 8 crore on the Telangana government for unauthorised transactions, which the Congress government later paid after assuming power.
Rama Rao is accused of directing the misuse of authority, while Arvind Kumar and BLN Reddy are also implicated.
However, Rama Rao reiterated that the Formula-E case was nothing but a “bogus case”. Throwing an open challenge, he said he was ready to stay back and undergo a lie-detector test if anyone wished.
Rama Rao said he had made every effort to bring the Formula-E race to Hyderabad. He admitted that it was he who had directed the release of Rs 46 crore from the government, but clarified that the funds had been deposited directly into the designated account. “Not a single rupee has been misused. Every rupee is accounted for. Where then is the corruption?” he questioned. He asserted that even if prosecution proceeded or chargesheets were filed, nothing would stand.
Accusing the government of trying to divert attention from real public issues by raking up the Formula-E case, Rama Rao asserted that Bharat Rashtra Samithi (BRS) would not be distracted. “We will continue to question the government on people’s issues,” he said.