What Is The Formula E Scam? How Is KTR Involved?

The phrase “Formula E” will be extensively heard in Telangana political circles henceforth amidst media reports that former IT Minister and the principal instigator of this event, KTR like to be arrested due to his involvement in an alleged financial scam in the case.

Coming to the facts of the case, and the charges filed against KTR, here’s a details look.

Coming to Formula E, the event, it is a flagship event orchestrated by the then BRS government where electric cars raced on the streets of Hyderabad. It was projected that this mega event is aimed to attaining global recognition to Hyderabad.

A Tripartite Agreement signed on 25.10.2022 between Formula E Operations Limited (UK), Telangana’s MA&UD Department, and Ace Nxt Gen Pvt. Ltd. aimed to conduct Formula E races from 2023 to 2026. The role of the Telangana government is limited to providing infra and civic services here.

The allegation is that Rs 54.88 crore was paid by HMDA for Season 10 without mandatory approvals or authorisation from the cabinet. These payments allegedly included additional ₹8.06 crore withholding tax paid to the Income Tax Department.

Then came the agreement revision in 2023 ans the original agreement was terminated by Formula E Operations on 27.10.2023 without consent from all parties. A new agreement was signed on 30.10.2023 with the Telangana government committing over ₹600 crore for future seasons.

These payments were made in advance in anticipation of agreements, which were not executed at the time. Allegedly, no approval was obtained from the Council of Ministers, Finance Department, or Law Department for the agreements.

It is alleged that KTR had verbally consented concerned HMDA authorities to transfer Rs 55 crore to a London based company without the approval of the cabinet or the finance department.

This is the reason why the Anti Corruption Bureau has gotten involved and the investigation is on to determine the perpetrators who incurred loss to the state exchequer with unauthorised fiscal transactions.

Meanwhile, KTR claims innocence in the case and even challenged CM Revanth Reddy for a debate on the same in the Telangana assembly.