New Delhi: The Telangana Governor has given the green light for an investigation against Bharat Rashtra Samithi (BRS) leader and former state minister KT Rama Rao (KTR) over alleged financial irregularities amounting to ₹55 crore in the organisation of the Formula E race held in Hyderabad last year. The probe will also cover potential violations in the agreement for future races, according to sources.

The Anti-Corruption Bureau (ACB) had sought Governor Jishnu Dev Varma’s approval to investigate KTR, citing allegations that, during his tenure as the Municipal Administration and Urban Development (MAUD) minister, he bypassed official procedures and issued verbal instructions to transfer funds to the race organisers.

The alleged irregularities include the direct transfer of ₹55 crore, including ₹9 crore in taxes, to one of the race’s organisers, Formula E Organisers (FEO). The funds were reportedly transferred under verbal orders from KTR, as confirmed by senior MAUD official Arvind Kumar during the investigation. Kumar, who was the principal secretary at the time, admitted that the instructions came directly from the former minister.

Further allegations include transferring funds after the announcement of Telangana Assembly elections without securing the Election Commission’s permission and making payments in pounds without prior clearance from the Reserve Bank of India (RBI). 

The race, which was held in Hyderabad on February 10 and 11, 2023, was part of a four-season agreement signed in 2022 between MAUD, Formula E Organisers (FEO), and Ace Nxt Gen Pvt. Ltd. However, Ace Nxt Gen later withdrew, citing financial losses, leaving FEO to manage subsequent events.

KT Rama Rao, who held key portfolios in the previous BRS-led government under his father, K Chandrashekar Rao, has strongly denied any wrongdoing. He has claimed that the Formula E race benefited Hyderabad by boosting revenue generation, with estimates suggesting potential earnings of ₹750 crore. 

KTR accused the current Congress government, led by Chief Minister Revanth Reddy, and the BJP of targeting him for political reasons. “Even the fear of imprisonment won’t stop me. If the government permits the investigation, I am ready to go to jail. I will plan a padyatra (foot march) while I am behind bars,” KTR said last month.

He also argued that the funds were transferred legitimately and that cabinet approval was not required for such transactions.