Corruption Case Filed Against KTR Over Hyderabad Formula E Race Controversy

In two significant developments in Telangana on Thursday, BRS working president KT Rama Rao was named as Accused-1 (A-1) in the Formula E race case by the Anti-Corruption Bureau (ACB), while Chief Minister A. Revanth Reddy announced the creation of a Special Investigation Team (SIT) to investigate alleged irregularities in the Outer Ring Road (ORR) lease tenders.

The ACB, acting on a directive from the state government, registered the case against KT Rama Rao after receiving the Governor’s approval to prosecute the former minister. The case alleges that the Telangana government transferred ₹55 crore to foreign companies without necessary approval, possibly violating Reserve Bank of India (RBI) regulations.

The investigation has also implicated senior officials. IAS officer Arvind Kumar, who served as the Municipal Administration Special Chief Secretary at the time, has been named as Accused-2 (A-2), and Chief Engineer BLN Reddy as Accused-3 (A-3). The charges are filed under sections 13(1)(A) and 13(2)(A) of the Prevention of Corruption Act, along with sections 409 and 120(B) of the Indian Penal Code.

Chief Minister A. Revanth Reddy, speaking in the State Legislative Assembly during a short discussion on the “Outstanding Liabilities of the State,” announced that the government would initiate a Special Investigation Team (SIT) probe into the controversial Outer Ring Road (ORR) lease. He further stated that the Cabinet would decide on the guidelines for the investigation.

The ORR lease controversy revolves around the BRS government’s decision to lease the Outer Ring Road for 30 years under a ‘toll-operate-transfer’ (ToT) model, valued at ₹7,380 crore. At the time of the lease agreement, KT Rama Rao held the position of Municipal Minister, while Arvind Kumar was the Municipal Administration Special Chief Secretary.

The allegations against KT Rama Rao and Arvind Kumar have sparked concerns regarding the legitimacy of their actions, particularly regarding the unauthorized transfer of funds to foreign entities, which the government contends violated Reserve Bank of India (RBI) regulations.