No corruption in Formula E race, says KTR
Hyderabad, Dec 19 : Denying allegations of corruption in Formula E race case, former Telangana minister and Bharat Rashtra Samithi (BRS) working president K. T. Rama Rao said that the Congress government has no guts to discuss the issue in the Assembly.
Hours after the Anti-Corruption Bureau (ACB) registered a First Information Report (FIR) against him, Rama Rao addressed a press conference to deny the allegations and revealed details of the transaction.
KTR, who has been named as accused number one in the alleged scam in transferring Rs. 55 crore to London-based company, said it was a fact that Hyderabad Metropolitan Development Authority (HMDA) paid Rs.55 crore to organisers. “The organizers said they received Rs 55 crore. The Congress government should explain where is the corruption,” he said.
Stating that people of Telangana are watching everything, the BRS leader claimed that Formula E Race held last year was an attempt to enhance the brand image of Hyderabad and Telangana.
Recalling that the Formula-E Race was contracted for four seasons on 25 October 2022, the former minister said the intention was to make Telangana a hub for electric vehicles.
KTR clarified that the HMDA had adhered to legal provisions, and funds were transparently transferred through government bank channels. He emphasized that Hyderabad had gained global recognition through the Formula E event, attracting significant investments in the electric vehicle sector. However, the Congress government’s inept handling of the situation caused reputational damage to Hyderabad and Telangana on the international stage.
Accusing the government of filing baseless and politically motivated cases to divert public attention from its administrative failures, he said that he was not afraid of anybody and that he would face the case legally.
“These fabricated cases and conspiracies will neither intimidate us nor deter our fight against corruption and incompetence. I have done no wrong, and I am confident of proving my innocence through legal means.”
KTR stated that the Telangana government, through the HMDA spent Rs.30 crore, while private sponsor Ace Urban contributed Rs. 110 crore. He cited an independent study by Nielsen which concluded that the event generated an economic impact of Rs. 700 crore for Hyderabad.
The BRS leader said the cancellation of subsequent races occurred due to the private sponsor’s financial constraints and the Congress government’s failure to honor contractual obligations.
KTR accused Chief Minister Revanth Reddy and his administration of attempting to divert attention from the Congress government's unfulfilled promises.
He also highlighted instances where international organizers of Formula E, dissatisfied with the government’s decisions, initiated arbitration proceedings, causing further embarrassment to Telangana.
Drawing parallels to a similar scenario in Montreal, Canada, where a local government canceled Formula E races, KTR pointed out that the organizers successfully sued for damages, emphasizing the potential legal and financial repercussions of the Congress government's actions.
He said Formula E organisers have filed an arbitration case to settle the issue with Harish Salve as lawyer. He claimed that FMSCI wants to give back a licensing fee of Rs 74 lakh but the government is not ready to take it.
Revealing that Chief Minister Revanth Reddy met Formula E cofounder Albert Longo on December 13, KTR shared the photographs with the media. He asked why the government has not revealed what transpired during the meeting
Earlier, ACB registered a case against KTR for alleged misuse of government funds under Sections 13(1)(A) and 13(2) of the Prevention of Corruption Act, along with Sections 409 and 120(B) of the Indian Penal Code. It is alleged that Rs. 45 crore was paid by HMDA to the foreign company FEO in violation of RBI guidelines. The payments were reportedly made without obtaining approvals from the Cabinet or the Finance Department.
The ACB named KTR as accused number one. IAS officer and then HMDA Commissioner Arvind Kumar and former HMDA Chief Engineer BLN Reddy have been named as accused number two and three respectively.