Telangana seeks governor nod to prosecute KTR in Formula E case

Revanth Reddy's Telangana government sought approval from the governor to prosecute KT Rama Rao for Rs 55 crore payment to Hyderabad's Formula E race without RBI clearance. KTR defended the funding, saying it was meant to enhance the city's global image and attract investment.

In Short

• Telangana seeks governor’s approval to prosecute KTR over Formula E race funding
• KTR defends payment, says it was aimed to attract investment into Hyderabad
• KTR criticises Chief Minister Revanth Reddy for cancelling future Formula E races

The Telangana government has sought Governor Jishnu Dev Varma’s approval to prosecute Bharat Rashtra Samiti (BRS) leader KT Rama Rao (KTR) over alleged irregularities in the funding of Hyderabad’s first Formula E race.

During the previous administration under BRS, the state government reportedly paid Rs 55 crore to the London-based organisers without securing necessary permissions from the Reserve Bank of India (RBI) during a period when the model code of conduct was in effect.

Telangana Chief Minister A. Revanth Reddy confirmed that the Anti-Corruption Bureau (ACB) is independently investigating the case and highlighted procedural violations.

KTR, however, defended the payment, stating it was essential to secure the race for Hyderabad and promote the city’s image as a hub for electric vehicles (EVs). He said the decision followed a sponsor’s withdrawal and that the funds were released by the Hyderabad Metropolitan Development Authority (HMDA) under his direction as Municipal Administration Minister. KTR argued the event was part of Telangana’s E-Mobility Week, aimed at promoting clean energy and attracting investments in EV technology.

KTR claimed the race generated Rs 700 crore in benefits and attracted Rs 2,500 crore in investments, including from brands like Amara Raja Batteries and Hyundai. He compared his efforts to past initiatives, such as the then united Andhra Pradesh Chief Minister N Chandrababu Naidu’s attempt to host a Formula 1 race in 2003. KTR also referenced other major events like the 2011 Formula 1 race in Noida, which cost Rs 1,700 crore but boosted India’s global standing.

KTR criticised Chief Minister Revanth Reddy for cancelling future Formula E races, accusing him of harming Hyderabad’s brand value and deterring investment. He claimed the cancellation cost the city Rs 700 crore in brand value. KTR urged the government to investigate those responsible for cancelling the event.

The 2024 race was allegedly cancelled due to a breach of contract by Telangana's Municipal Administration and Urban Development Department after the new government, led by Congress, did not fulfil the Host City Agreement signed in October 2023.

KTR said he was ready to face legal consequences, including jail time, to protect Hyderabad’s image and continue his work, vowing to keep fighting for the people.