Why KT Rama Rao is under the scanner over Hyderabad Formula-E race

KTR during a public event.

In a temporary relief to BRS leader KT Rama Rao, the Telangana High Court on Friday directed the Anti-Corruption Bureau officials not to arrest him till December 30 in the Formula-E race case.

A corruption case has been lodged against former Telangana minister KT Rama Rao Rao in connection with alleged irregularities in the Formula-E car race in Hyderabad.

He has been accused of misuse of government funds under various sections of the Prevention of Corruption Act and the IPC. The cabinet clearance for the case came on Monday.

What is the case against KTR?

The Telangana ACB on Thursday registered a case against BRS working president and MLA KT Rama Rao over alleged payments, some of it in foreign currency without approvals, to conduct Formula-E race in Hyderabad during the previous regime.

Rao is accused of directing the misuse of authority as the Municipal Administration and Urban Development minister, while IAS officer Arvind Kumar and former Hyderabad Municipal Development Authority Chief Engineer BLN Reddy are also implicated.

Governor Jishnu Dev Varma had recently granted permission to register a case against Rama Rao, over the issue. The FIR named Rama Rao as prime accused, senior IAS officer Arvind Kumar and retired bureaucrat BLN Reddy as accused no 2 and 3 respectively.

The case was registered under relevant sections of the Prevention of Corruption Act and sections dealing with criminal breach of trust, conspiracy under IPC.KTR dismisses the charges as political conspiracy

Rao has alleged that he is being targeted by the Congress government of Revanth Reddy, which came to power in the state last year, ending the 10-year rule of Bharat Rashtra Samithi or BRS, led by  Rao's father and former Chief Minister K Chandrashekar Rao.

He claimed the agreement was completely transparent, all payments to the organizers were made in a transparent manner and there is no irregularity or corruption involved in the matter.

"Where is corruption in this? We have paid Rs 55 crore. They (Formula-E) acknowledged the payment. This is a straightforward account. HMDA has an account in Indian Overseas Bank and money has been transferred from that account..." Rama Rao had said reacting to the case.

"I have already explained this in detail earlier. However, your government has not stopped its false propaganda," he added.

In an open letter to Reddy yesterday, Rao said, "If you have the courage, initiate a discussion on the Formula-E race issue in the state assembly".

Formula-E had announced the cancellation of Hyderabad E-Prix, alleging a contract breach by the new Telangana government. The second Formula-E Race in India was slated to be held on February 10.