Formula E row: Will BJP appointed Telangana Governor allow Congress CM to prosecute KTR?

Hyderabad: When Telangana minister Ponguleti Srinivasa Reddy said there would be 'fireworks', little did anyone realize that the Congress government was reviving the Formula E case to seemingly put BRS on the mat.

Telangana government has written to Governor Jishnu Dev Varma seeking permission to register an FIR against BRS working president and MLA K T Rama Rao over alleged irregularities in conducting the Formula E race in Hyderabad. The Governor's nod is awaited.

On November 6, Chief Minister A Revanth Reddy met the Governor and speculations are rife about possible legal action against KTR.

Soon after Congress came to power in Telangana, authorities found that the previous BRS government paid Rs 54 crore including Rs 8 crore in taxes to ABB Formula E, the organizers of Formula E season 10 in Hyderabad.

This was allegedly done without the cabinet's approval. Following this, a memo was served to senior IAS officer Arvind Kumar asking why such a transaction was carried out and with whose permission. Congress’ main allegation was why BRS spent Rs 55 crores on Formula E? And why was no action taken against Ace Nxt Gen, a subsidiary of Greenko, for defaulting and backing out of the event.

Subsequently, the event scheduled to be held in February 2024, was cancelled. The promoters later said it was a 'breach of contract'.

Will the BJP be on Revanth Reddy's side against KTR?

Based on a complaint filed by the Telangana MAUD department, the Anti-Corruption Bureau (ACB) is looking into the allegations. So far, no case has been registered. The state probing agency has written to the Governor seeking permission for an investigation.

Under the rules, the Governor has certain discretionary powers about granting sanction for the prosecution of public servants. According to the rule, for the prosecution of public servants for fundamentally criminal offenses, a grant of sanction under Section 197 of the Code of Criminal Procedure is necessary. This grant of sanction is necessary for prosecuting judges, magistrates, and other public servants so that they can be prevented from frivolous prosecution and in cases where the prosecution of these persons is not in the public interest.

Supreme Court in some cases has considered it to be the Council of Ministers and that even in cases in which the Statutes use the expression 'Governor', by way of process of interpretation the Apex Court has held the expression to be interpreted as the 'State Government'.

"The power to sanction is nothing but an executive action of the Government,” Biplab Kumar writes in an article titled `Sanctions for Prosecution of Public Servants: A Necessary Evil’

Speaking to NewsMeter, former IPS officer M V Krishna Rao explained, "If the Governor does not give 'sanction', they (ACB) cannot proceed with the case. However, it is also to be noted that the investigating agency does not need prior permission to begin an investigation. The sanction petition to the Governor is a precaution so that the person in question does not approach the court saying the probe is not by section 197 Cr PC.”

A similar situation had occurred in Andhra Pradesh and Karnataka. Former IPS officer Krishna Rao said, "Karnataka Chief Minister Siddaramaiah's wife, owned a few acres of land. Over 15 years, the land value increased due to urban development. That land and those of many others were acquired by the Mysore Urban Development Authority and assured compensation. Subsequently, when B S Yediyurappa was the Chief Minister, the government compensated the land owners by allocating them plots at different locations in the same area. The compensation was a policy decision and the plots were allocated to many landowners including Siddaramaiah's wife."

"In his recent election affidavit, Siddharamaiah mentioned that his wife owns 5 plots (allocated by the BJP government as compensation for acquiring her 5 acres of land). Subsequently, a complaint was filed about the discrepancy in the election affidavit of Siddaramaiah. Karnataka Governor Thaawarchand Gehlot directed the agency to investigate. Siddaramaiah approached the High Court, which, however, upheld the Governor's decision. As a result, a case was filed against the Chief Minister. In Telangana, it is the agency that has taken the lead and written to the Governor.”

According to official sources, the sanction petition has been sent to the Advocate General for legal scrutiny.

N Ramachander Rao, a practicing advocate and former BJP Hyderabad president added, "When Chief Minister N Chandrababu Naidu was arrested in the alleged skills development scam, the probing agency under the Y S Jagan Mohan Reddy led government had not taken the sanction of the Governor, which is mandatory as per the 197 Cr PC. This was the contention by the council of Naidu while the case was heard in the Supreme Court.”

From the face of it, it appears that the Telangana Chief Minister has taken legal advice very seriously about the Formula E case proceedings, especially after what happened in the neighboring states. A question also arises if the Congress wants to make BJP, a participant against the BRS.

Why book me?’ KTR blames Congress govt over Formula E cancellation in Hyderabad.

KTR publically admitted that he had instructed the IAS officer to transfer funds. "Yes, I instructed him to transfer funds, It was my decision to bolster the brand image of Hyderabad, " he said.

KTR noted that the Uttar Pradesh government had previously backed the Formula 1 (F1) race through the JP Group in Noida, where it was held for three years. He also highlighted that the Tamil Nadu government invested Rs 42 crores in an F4 race, while Andhra Pradesh under chief minister Chandrababu Naidu spent Rs 2,000 crores on the 2003 Afro-Asian Games at Gachibowli Stadium. He wanted to emphasize that state governments spending money on sports is common globally.

During BRS’ tenure, KTR and other officials, including IAS officers Arvind Kumar and Jayesh Ranjan, succeeded in bringing Formula E to Hyderabad. The first race was held, as part of Season 9, in February 2023.

Electric vehicles require supportive policies, KTR explained, drawing a parallel with the successful Genome Valley biotech cluster that Naidu initiated.

During its rule, BRS intended to make Hyderabad a mobility hub, which even attracted a USD 1 billion investment offer from China’s BYD. However, it was declined due to national concerns over Chinese investments.

Greenko, the event sponsor, later withdrew, citing financial reasons, and issued a letter stating they wouldn’t hold the next season in Hyderabad. Six months before the Telangana elections, Formula E officials raised sponsorship concerns, prompting BRS to fund the race, paying Rs 55 crore to secure Hyderabad’s inclusion. KTR instructed Arvind Kumar to facilitate this, asserting that Congress ‘lacked vision’ in canceling the race.