The Telangana Governor has officially greenlit the Anti-Corruption Bureau’s (ACB) request to prosecute BRS working president and former minister K T Rama Rao (KTR) in the high-profile Formula E race corruption case. This development marks a pivotal moment in one of Telangana’s most scrutinized financial irregularity probes, involving allegations of misuse of over ₹54.88 crore in public funds. After months of intense investigation, the approval paves the way for the ACB to move forward with filing a chargesheet, intensifying scrutiny on the previous BRS government’s handling of the international electric car racing event.
What Led to the Governor’s Approval in the KTR Formula E Case?
The journey to this sanction began with a meticulous nine-month investigation by the Telangana ACB, launched following complaints of procedural lapses and financial mismanagement in organizing the Hyderabad E-Prix. Investigators allege that funds were released without proper approvals from the state Finance Department or the Reserve Bank of India (RBI), particularly for foreign currency transactions.
On September 9, the ACB formally approached the Governor’s office, seeking permission under Section 17A of the Prevention of Corruption Act to prosecute KTR, who served as the Municipal Administration and Urban Development (MA&UD) minister during the BRS regime. The delay—spanning over ten weeks—stemmed from thorough legal reviews, including consultations with the Attorney General. Finally, on November 19, Governor Jishnu Dev Varma granted the nod, citing sufficient prima facie evidence of irregularities.
This approval is crucial because KTR, as a sitting MLA at the time of the alleged offenses, required gubernatorial sanction for prosecution. Similar permissions were earlier granted for initiating the probe, but this latest clearance allows the ACB to press formal charges.
Key Allegations Against KTR in the Formula E Race Corruption Scandal
At the heart of the Formula E race corruption case lies the accusation that KTR and his associates bypassed standard protocols to release approximately ₹55 crore from the Hyderabad Metropolitan Development Authority (HMDA) accounts. These funds were intended for Formula E Operations (FEO), the event organizer, but investigators claim the payments violated multiple regulations:
- Unauthorized Foreign Remittances: A significant portion was transferred in British pounds without RBI clearance, leading to an ₹8 crore penalty later imposed on the state.
- Quid Pro Quo Claims: Probes uncovered that a sponsoring company allegedly donated ₹44 crore to the BRS party via electoral bonds, purportedly in exchange for event rights and sponsorship favors.
- Bypassing Cabinet and Finance Approvals: Decisions were made unilaterally, without mandatory nods from the state cabinet or finance department, raising questions about transparency in high-value international deals.
The event itself—the inaugural Hyderabad E-Prix in February 2023—was hailed as a boost for Telangana’s global image and e-mobility push. However, the planned second edition in 2024 was canceled after the Congress government assumed power, citing contractual breaches and financial concerns.
ACB’s Exhaustive Investigation: Questionings, Evidence, and Next Steps
The Telangana ACB left no stone unturned during its probe. Officials questioned KTR on four separate occasions, grilling him for hours on his role in sanctioning funds and communications with event organizers. Former IAS officer Arvind Kumar, then Special Chief Secretary in MA&UD, faced interrogation five times, while former HMDA chief engineer BLN Reddy was also extensively examined.
Investigators amassed a trove of evidence, including:
- Emails and official correspondence linking KTR directly to fund release directives.
- Electronic records of transactions and electoral bond details.
- Bank statements showing transfers to private entities unrelated to the event.
- Witness statements from HMDA officials and sponsorship firms.
With the Governor’s approval secured for KTR, the ACB now awaits clearance from the Department of Personnel and Training (DoPT) to prosecute Arvind Kumar, a serving IAS officer. Sources indicate the bureau may file a consolidated chargesheet against KTR, Arvind Kumar, and BLN Reddy once all sanctions are in place—or proceed initially against KTR alone to maintain momentum.
This chargesheet, expected soon, could include charges under the Prevention of Corruption Act for criminal misconduct, along with IPC sections for criminal breach of trust and conspiracy.
Who is K T Rama Rao? Profile of the Key Accused in the Case
K T Rama Rao, popularly known as KTR, is the son of former Telangana Chief Minister K Chandrashekar Rao (KCR) and serves as the working president of the Bharat Rashtra Samithi (BRS). During the BRS government’s tenure from 2014 to 2023, KTR held key portfolios, including IT, Industries, and MA&UD. He positioned himself as a dynamic leader focused on urban development and attracting global events to Hyderabad.
KTR has consistently defended the Formula E initiative, arguing it elevated Hyderabad’s status as a sustainable mobility hub and generated significant economic benefits—citing independent reports estimating $82 million in gains. He dismisses the case as a “bogus” and politically motivated witch-hunt by the ruling Congress party.
The Role of Arvind Kumar and BLN Reddy in the Formula E Irregularities
Arvind Kumar, a senior IAS officer, acted as the principal secretary in the MA&UD department and allegedly executed KTR’s directives for fund releases. BLN Reddy, the then HMDA chief engineer, handled operational aspects of the payments.
Both officials maintain they followed superior orders and that no personal gain was involved. However, the ACB views them as key enablers in the alleged scam, with evidence pointing to their signatures on critical documents bypassing protocols.
Political Ramifications: Congress vs BRS Battle Heats Up
The Formula E race case has become a flashpoint in Telangana’s fierce political rivalry. The Congress government, led by Chief Minister Revanth Reddy, accuses the previous BRS regime of rampant corruption and using public funds for party benefits. Ministers have hinted at “major discoveries” emerging from the probe.
On the flip side, BRS leaders, including KTR and his sister K Kavitha, label it “vendetta politics” and a scripted drama to deflect from the Congress government’s own controversies. KTR has challenged Revanth Reddy to an open assembly debate, asserting his readiness to face any legal scrutiny, even joking about going to jail if proven wrong.
This case echoes broader themes in Indian politics: the use of anti-corruption agencies in inter-party wars, especially post-election regime changes.
What is Formula E Racing? Understanding the Hyderabad E-Prix Event
Formula E is the world’s premier all-electric single-seater racing championship, sanctioned by the FIA (Fédération Internationale de l’Automobile). Launched in 2014, it promotes sustainable motorsport and innovation in electric vehicles (EVs).
Hyderabad hosted Asia’s first Formula E race in February 2023 along a street circuit near Hussain Sagar Lake, drawing global attention. The BRS government signed a multi-year deal worth hundreds of crores, positioning Telangana as an EV leader under its 2020 Electric Vehicle Policy.
Proponents argue such events boost tourism, branding, and investments—Hyderabad saw international media coverage and celebrity attendance. Critics, however, question the return on investment for taxpayer money, especially amid allegations of irregularities.
Timeline of the Telangana Formula E Corruption Case
- October 2022: Tripartite agreement signed between FEO, MA&UD, and private firm Ace Nxt Gen.
- February 2023: Successful inaugural Hyderabad E-Prix.
- December 2023: Congress government assumes power; complaints filed with ACB.
- December 2024: Initial Governor nod for probe; FIR registered naming KTR as A1, Arvind Kumar as A2, BLN Reddy as A3.
- 2025 (Ongoing): Multiple questionings; ACB submits report in September seeking prosecution sanction.
- November 19, 2025: Governor approves KTR prosecution; DoPT clearance pending for Arvind Kumar.
Potential Outcomes and What Happens Next in the KTR Prosecution
With prosecution sanctioned, the ACB is poised to file the chargesheet in a special court soon. This could lead to:
- Formal arrests if the court deems necessary.
- Parallel probes by the Enforcement Directorate (ED) under money laundering laws.
- High Court interventions, as KTR has previously sought quashing of FIRs.
Legal experts predict a protracted battle, with possibilities of bail and appeals. If convicted, penalties could include imprisonment and fines under anti-corruption laws.
Why the Formula E Case Matters for Telangana’s Anti-Corruption Drive
This scandal underscores the need for greater transparency in government-sponsored international events. It highlights risks in bypassing financial safeguards for “prestige projects” and the role of electoral bonds in potential quid pro quo arrangements.
For Telangana, a state priding itself on development, the case tests institutional integrity. The Congress government views it as a cornerstone of its anti-corruption agenda, while BRS sees it as suppression of opposition voices.
Broader Implications for Political Funding and Global Events in India
The involvement of electoral bonds—scrapped by the Supreme Court in 2024—revives debates on anonymous political donations. Similar cases in other states raise questions about hosting mega-events like F1 or Olympics bids.
As India pushes for green mobility, events like Formula E remain attractive, but this episode serves as a cautionary tale: ambition must align with accountability.
KTR’s Defense: “No Corruption, Only Vision for Hyderabad”
Throughout the probe, KTR has remained defiant. He admits directing fund releases but insists they went directly to designated accounts with full transparency. “I worked to put Hyderabad on the global map,” he has stated, ready to face lie detector tests or jail if allegations hold.
Supporters rally behind him, viewing the case as revenge for BRS’s decade-long rule.
Public Reaction and Media Coverage of the Scandal
Social media buzzes with #FormulaECase and #KTR, polarized along party lines. National outlets track it as a test for Telangana’s Congress government, while local channels dissect daily developments.
Analysts note it distracts from pressing issues like unemployment but reinforces anti-corruption sentiment among voters.
Conclusion: A Defining Moment in Telangana Politics
The Governor’s approval to prosecute KTR in the Formula E race corruption case signals that no one is above the law, regardless of political stature. As the ACB prepares its chargesheet, all eyes are on the courts for justice.
Whether this exposes deep-rooted mismanagement or proves to be political theater, it will shape Telangana’s governance narrative for years. Transparency in public spending and ethical event management must emerge stronger from this controversy.
