Site icon Telangana NavaNirmana Sena

KTR Formula E Race Case: Arrest Preparations Underway

skannegari
KT Rama Rao Booked by Telangana ACB for Alleged Corruption in Formula E Race Telangana’s Anti-Corruption Bureau (ACB) has filed a First Information Report (FIR) against KT Rama Rao (KTR), the Bharat Rashtra Samithi (BRS) Working President, over alleged financial irregularities during the Formula E race held in Hyderabad in 2023. Alongside KTR, senior officials IAS officer Arvind Kumar and former Hyderabad Metropolitan Development Authority (HMDA) Chief Engineer BLN Reddy have also been named in the case. Key Details of the Case The ACB’s FIR accuses KTR of financial misconduct during his tenure as the Minister for Municipal Administration and Urban Development. The case is registered under multiple sections of the Prevention of Corruption Act and the Indian Penal Code (IPC), highlighting accusations of corruption, conspiracy, and breach of trust. Allegations Against KTR and Officials Unapproved Fund Transfers: The HMDA allegedly transferred Rs 55 crore to Formula E Operations (FEO) without requisite approvals. Bypassing Procedures: KTR reportedly sanctioned these funds without adhering to established protocols. RBI Violations: The transfer also violated Reserve Bank of India (RBI) guidelines, leading to a fine of Rs 8 crore imposed on the Telangana government, which was later paid by the new Congress government. Host City Agreement Breach: The Formula E Season 10 race, scheduled for February 2024, was canceled due to non-compliance with the Host City Agreement signed in October 2023. Role of Arvind Kumar and BLN Reddy Arvind Kumar, the former Special Chief Secretary of Municipal Administration, and BLN Reddy, the former HMDA Chief Engineer, are accused of facilitating the unauthorised payments. Kumar is alleged to have sanctioned Rs 46 crore from HMDA resources before the formal agreement with Formula E organisers was signed, while Reddy is implicated for operational oversights. Fallout of the Allegations Government and Public Reaction The controversy over the Formula E race has attracted widespread attention. The Congress government issued a notice to Arvind Kumar demanding an explanation for the financial discrepancies. KTR, meanwhile, defended his actions, stating his intent was to elevate Hyderabad’s global image by hosting the high-profile event. Cancellation of Formula E Season 10 Following the breach of the Host City Agreement, Formula E Operations announced the cancellation of the Season 10 race. The decision was attributed to the Telangana government’s inability to fulfill contractual obligations. Political and Legal Implications Political Backlash: The Congress government has accused the previous regime of prioritising corporate gains over public welfare. Deputy Chief Minister Mallu Bhatti Vikramarka claimed the Formula E race did not benefit Hyderabad or Telangana but served private interests. KTR’s Response: KTR has denied the allegations, asserting that his decisions were aimed at promoting Hyderabad on a global platform. He declared his willingness to face legal scrutiny and rejected claims of personal gain. Legal Proceedings The FIR was registered after Governor Jishnu Dev Varma granted approval for the investigation. The case, registered under Cr. No.12/RCO-CIU-ACB/2024, invokes sections of the Prevention of Corruption Act and the IPC, including: Section 13 (1) (a) r/w 13 (2): Pertaining to criminal misconduct by public servants. Section 409 r/w 120-B: Relating to criminal breach of trust and conspiracy. The investigation, led by Deputy Superintendent of Police Majid Ali Khan, is ongoing, with further developments awaited. Broader Implications for Telangana The case has sparked debates over governance and transparency in Telangana. While the BRS defends its efforts to attract global attention to Hyderabad, critics argue that such ventures must adhere to fiscal responsibility and accountability. The outcome of this case will likely impact public perception of the state’s leadership and its approach to large-scale international events.

KT Rama Rao Booked by Telangana ACB for Alleged Corruption in Formula E Race. KTR Formula E Race Case: Arrest Preparations Underway.

Telangana’s Anti-Corruption Bureau (ACB) has filed a First Information Report (FIR) against KT Rama Rao (KTR), the Bharat Rashtra Samithi (BRS) Working President, over alleged financial irregularities during the Formula E race held in Hyderabad in 2023. Alongside KTR, senior officials IAS officer Arvind Kumar and former Hyderabad Metropolitan Development Authority (HMDA) Chief Engineer BLN Reddy have also been named in the case.

Key Details of the Formula E Race Case

The ACB’s FIR accuses KTR of financial misconduct during his tenure as the Minister for Municipal Administration and Urban Development. The case is registered under multiple sections of the Prevention of Corruption Act and the Indian Penal Code (IPC), highlighting accusations of corruption, conspiracy, and breach of trust.

Allegations Against KTR and Officials

  1. Unapproved Fund Transfers: The HMDA allegedly transferred Rs 55 crore to Formula E Operations (FEO) without requisite approvals.
  2. Bypassing Procedures: KTR reportedly sanctioned these funds without adhering to established protocols.
  3. RBI Violations: The transfer also violated Reserve Bank of India (RBI) guidelines, leading to a fine of Rs 8 crore imposed on the Telangana government, which was later paid by the new Congress government.
  4. Host City Agreement Breach: The Formula E Season 10 race, scheduled for February 2024, was canceled due to non-compliance with the Host City Agreement signed in October 2023.
https://www.tgnns.com/wp-content/uploads/2024/12/KTR-Formula-E-Race-Case-Press-meet-at-BRS-bhavan.mp4

Role of Arvind Kumar and BLN Reddy

Arvind Kumar, the former Special Chief Secretary of Municipal Administration, and BLN Reddy, the former HMDA Chief Engineer, are accused of facilitating the unauthorised payments. Kumar is alleged to have sanctioned Rs 46 crore from HMDA resources before the formal agreement with Formula E organisers was signed, while Reddy is implicated for operational oversights.

Fallout of the Allegations

Government and Public Reaction

The controversy over the Formula E race has attracted widespread attention. The Congress government issued a notice to Arvind Kumar demanding an explanation for the financial discrepancies. KTR, meanwhile, defended his actions, stating his intent was to elevate Hyderabad’s global image by hosting the high-profile event.

Cancellation of Formula E Season 10

Following the breach of the Host City Agreement, Formula E Operations announced the cancellation of the Season 10 race. The decision was attributed to the Telangana government’s inability to fulfill contractual obligations.

Political and Legal Implications

  1. Political Backlash: The Congress government has accused the previous regime of prioritising corporate gains over public welfare. Deputy Chief Minister Mallu Bhatti Vikramarka claimed the Formula E race did not benefit Hyderabad or Telangana but served private interests.
  2. KTR’s Response: KTR has denied the allegations, asserting that his decisions were aimed at promoting Hyderabad on a global platform. He declared his willingness to face legal scrutiny and rejected claims of personal gain.

Legal Proceedings

The FIR was registered after Governor Jishnu Dev Varma granted approval for the investigation. The case, registered under Cr. No.12/RCO-CIU-ACB/2024, invokes sections of the Prevention of Corruption Act and the IPC, including:

The investigation, led by Deputy Superintendent of Police Majid Ali Khan, is ongoing, with further developments awaited.

Broader Implications for Telangana

The case has sparked debates over governance and transparency in Telangana. While the BRS defends its efforts to attract global attention to Hyderabad, critics argue that such ventures must adhere to fiscal responsibility and accountability. The outcome of this case will likely impact public perception of the state’s leadership and its approach to large-scale international events.

First Information Report (FIR) Under Prevention of Corruption Act

Understanding the Context of the FIR

The First Information Report (FIR), recorded under the Prevention of Corruption Act and other relevant legal provisions, is an essential document initiating the legal process. This report pertains to an investigation involving allegations of misappropriation of government funds amounting to significant sums and irregularities in financial transactions linked to high-profile individuals.

FIR on KT Rama Rao Booked by Telangana ACB for Alleged Corruption in Formula E RaceDownload

Legal Framework and Sections Invoked

Acts and Sections

The FIR cites multiple legal provisions, including:

  1. Prevention of Corruption Act, 1988 (Amended in 2018): Sections 13(1)(a) read with 13(2), addressing criminal misconduct by public servants.
  2. Indian Penal Code (IPC): Sections 409 (criminal breach of trust by a public servant) and 120-B (criminal conspiracy).
  3. Other Relevant Acts: Specific sections yet to be detailed.

Key Details of the FIR

Time and Place of Occurrence

The alleged offense occurred prior to October 18, 2024. The incident was reported at the ACB CIU office, Banjara Hills, Hyderabad, with diary reference dated December 18, 2024, at 1730 hours.

Complainant’s Details

The complaint was lodged by Sri M. Dana Kishore, IAS, Principal Secretary to the Government, MA & UD Department, Telangana. He outlined significant discrepancies in financial dealings and governance issues within the MA & UD Department.

Accused Individuals

The FIR names the following individuals:

  1. Sri K. Taraka Rama Rao: Then Minister, MA & UD, Industries and IT, Government of Telangana, and current MLA from Siricilla.
  2. Sri Arvind Kumar, IAS: Then Special Chief Secretary, MA & UD Department, now serving in the Revenue (Disaster Management) Department.
  3. Sri B.L.N. Reddy: Former Chief Engineer, HMDA, who has since retired.

These individuals are alleged to have been involved in decisions leading to financial irregularities.

Allegations of Misappropriation

Tripartite Agreement for Formula E Races

A Tripartite Agreement was signed on October 25, 2022, between:

The agreement was for organizing Formula E races for Seasons 9 to 12 in Hyderabad. The role of the Telangana Government was limited to providing infrastructure and civic amenities. However, discrepancies arose when the sponsor withdrew from subsequent seasons, leading to the government assuming the financial obligations of the private sponsor.

Financial Irregularities

The allegations include:

  1. Unapproved Payments: Payments of over £90,00,000 (approx. INR 110 Crores) for Season 10 without requisite regulatory approvals.
  2. Tax Liabilities: Additional tax burdens of Rs 8.06 Crores paid to the Income Tax Department due to improper planning.
  3. Excessive Spending: A total expenditure of Rs 54.88 Crores, far exceeding sanctioned limits, using general funds of HMDA without government approval.

Procedural Violations

The FIR notes that the established procedure requiring government approval for expenditures exceeding Rs 10 Crores was not followed. Moreover, foreign remittances were made without securing regulatory clearances, further aggravating financial discrepancies.

Sequence of Events

  1. Draft Long Form Agreement (LFA): Submitted on September 27, 2023, seeking approvals for administrative sanctions and financial commitments.
  2. Invoices Issued: F.E.O. raised two invoices on September 25 and 29, 2023, totaling approximately INR 46 Crores.
  3. Payments Authorized: The Chief Engineer, HMDA, authorized these payments, which were transferred through Indian Overseas Bank on the same dates.
  4. Agreement Termination: On October 27, 2023, F.E.O. terminated the agreement citing unresolved issues.

Investigation and Next Steps

Verification and Enquiry

The Anti-Corruption Bureau (ACB) has undertaken a thorough investigation, scrutinizing:

  1. Financial Records: To trace fund flow and identify irregularities.
  2. Approvals and Sanctions: To verify adherence to procedural norms.
  3. Communication Exchanges: Between government officials and F.E.O. representatives.

Recoverable Assets

The alleged misappropriated amount of Rs 54.88 Crores is central to the investigation. Efforts will focus on:

Conclusion

This FIR underscores the need for transparency and accountability in public office. The ACB’s investigation will play a pivotal role in ensuring that those responsible for financial impropriety are held accountable. The findings will have significant implications for governance and legal compliance within public sector undertakings in Telangana.

Exit mobile version