Formula E race: KTR grilled for over 7 hours by ACB

BRS working president and former IT Minister K.T. Rama Rao coming out after interrogation by ACB in Banjara Hills, Hyderabad on Thursday.
| Photo Credit: NAGARA GOPAL

Bharat Rashtra Samithi (BRS) working president and former minister K.T. Rama Rao was grilled for over seven hours by senior officials of the Telangana Anti-Corruption Bureau (ACB) on Thursday.

Mr. Rama Rao arrived at the ACB headquarters in Banjara Hills around 9.30 a.m. in his white SUV, accompanied by his lawyer and personal assistant. The questioning began at 10 a.m. and lasted until 5.15 p.m, with a 30-minute lunch and two tea breaks.

The former minister appeared for quizzing in connection with the alleged ₹54.88 crore financial irregularities in the Formula-E race deal. He was questioned about the allegations made by the complainant Principal Secretary M. Dana Kishore. “The case is being investigated from the perspective of criminal misconduct and misappropriation of funds. He was asked about procedural violations and his role in the transfer of funds and irregularities in furnishing the two agreements among other things,” a senior official close to the investigation said.

Indicating that the accused person could be called again for questioning, the official said, “We have just begun the investigation.” Meanwhile Mr. Rama Rao said that he was asked the same questions several times during the day-long grilling. “The same 4-5 questions given by CM Revanth Reddy were asked. I asked the officials – where is corruption if the money sent is credited to beneficiary account, they did not have an answer,” the former minister told the media after he stepped out of the ACB office. He reaffirmed that he would appear for questioning whenever asked to.

The ACB has summoned former Chief Engineer of Hyderabad Metropolitan Development Authority (HMDA) B.L.N. Reddy, the third accused in the case, for quizzing on Friday.

Hyderabad City Police set up a perimeter around the streets leading up to the ACB office in Banjara Hills. Shops and commercial establishments within 300-metre radius were shut down and bandobast was deployed to restrict party workers. This is not the first time Mr. Rama Rao arrived at the ACB office. He was earlier summoned by the ACB on January 6. However, he returned without appearing before ACB officials after his advocates were stopped by the police.

The ACB issued a fresh notice to the accused official, asking him to appear again on January 9. On Wednesday, the Telangana High Court permitted KTR’s advocate to watch the interrogation by investigators through a glass window of the library in the ACB building in Banjara Hills.

This comes about three weeks after the ACB booked a case, with Mr. Rama Rao as an accused, based on a complaint by Principal Secretary M. Dana Kishore alleging irregularities in payments exceeding ₹54.88 crore made by the HMDA to Formula-E Operations Limited (FEO) and associated entities without adhering to established financial procedures. The ED too had registered an Enforcement Case Information Report (ECIR) pertaining to the alleged financial irregularities in Formula E deal.

According to the FIR, ₹45.7 crore was remitted to FEO between September and October 2023, despite FEO terminating its agreement with the Telangana government during the same period. This amount also incurred a tax burden of ₹8.06 crore, which was borne by the HMDA.

Tripartite agreement signed in October 2022 between the Telangana government, FEO, and event sponsor Ace Nxt Gen Pvt. Ltd. had limited the State government’s financial responsibility. However, the FIR alleges that disputes between FEO and Ace Nxt Gen Pvt. Ltd. led to the government assuming financial liability without regulatory approvals, causing losses to the exchequer. While the ACB is set to question the accused regarding the allegations, the ED is investigating the flow of funds and potential procedural violations.