KTR, IAS Arvind Kumar booked for misuse of Govt funds in Formula E race
It was alleged that Rs 45 crores was paid by HMDA to the foreign company FEO in violation of RBI guidelines
By Coreena Suares Published on 19 Dec 2024 11:22 AM GMT
BRS working president KT Rama Rao and former MA&UD principal secretary Arvind Kumar
Hyderabad: The sleuths of the Anti-Corruption Bureau have registered a criminal case against BRS working President KT Rama Rao, IAS officer Arvind Kumar and former HMDA chief engineer BLN Reddy for transferring Rs 54 crores to an international agency without the consent of the Cabinet.
The case pertains to the alleged irregularities found in the organisation of the Formula E race held in Hyderabad in 2023. The case follows a letter written by the chief secretary.
It was alleged that Rs 45 crores was paid by HMDA to the foreign company FEO in violation of RBI guidelines.
The case will permit the sleuths of ACB to question KTR and IAS Arvind Kumar.
Timeline of events
Soon after Congress came to power in Telangana, authorities found that the previous BRS government paid Rs 54 crores including Rs 8 crore in taxes to ABB Formula E, the organisers 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’s main allegation was about BRS allegedly spending Rs 55 crores on Formula E. The question was also raised about the inaction 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’.
In a reply to the government, IAS Arvind Kumar said, serving as the MAUD principal secretary then, followed the orders of the minister (referring to KTR). On several occasions, KTR admitted to having verbally ordered the department to transfer the money in the best interests of the event.
The ACB registered a case under sections 13(1)(A) and 13(2) of the Prevention of Corruption Act, along with Sections 409 and 120(B) of the IPC.
During the recent Cabinet meeting held on December 16, a decision was taken to proceed further with an inquiry into the former MA&UD minister and BRS party working president KT Rama Rao (KTR), Reddy said.
Governor’s nod
The Telangana government wrote to governor Jishnu Dev Varma seeking permission to register an FIR against KTR, to which the governor took time and subsequently gave a nod to the file.
Elaborating further, Minister for Revenue Ponguleti Srinivasa Reddy said that governor Jishnu Dev Varma had approved the inquiry into the Formula-E car race and gave clearance to the State government. Chief Secretary A Santhi Kumari was given permission to investigate IAS officer Arvind Kumar. Reddy said that a letter of permission to investigate would be sent to the ACB by the chief secretary tonight or Tuesday.
Following a letter by the CS, the ACB registered a case against KTR.
Let’s discuss this in Assembly, KTR writes to Revanth
If you have the courage, let’s discuss the Formula E race in the Assembly, wrote BRS working president and MLA KT Rama Rao (KTR) in an open letter to chief minister A Revanth Reddy, a day after the Cabinet approved an inquiry into alleged irregularities.
