Hyderabad: Two months ago a senior Minister in Telangana had predicted political fireworks before Diwali. This did not happen, prompting the opposition Bharat Rashtra Samithi (BRS) to ridicule the ruling Congress party over its ’empty threat’.
Two months later, the state seems to be witnessing the promised fireworks with both the Anti-Corruption Bureau (ACB) and the Enforcement Directorate proceeding against BRS Working President and former Telangana Minister K. T. Rama Rao (KTR) for alleged irregularities in the conduct of the Formula-E car race in Hyderabad last year when BRS was in power.
Governor grants permission to prosecute KTR
With Governor Jishnu Dev Varma granting permission for the prosecution of K. T. Rama Rao (KTR), the ACB moved swiftly to book a case against the former Minister.
The ACB registered the First Information Report (FIR) 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, naming KTR as the accused number one.
Senior IAS officer Arvind Kumar and Hyderabad Metropolitan Development Authority (HMDA) former chief engineer BLN Reddy were named as accused number two and three respectively. The anti-graft agency has also recorded the statement of M. Dana Kishore, Principal Secretary, of Municipal Administration and Urban Development, on whose complaint the case was booked.
The move was apparently aimed at preparing the ground for issuing notices to the accused. The allegations centre around the payment of more than Rs 54.88 crore to UK-based Formula-E Operations Limited (FEO) and others in gross violation of established procedures.
KTR denies allegations
Denying the allegation of corruption, KTR maintained that the Formula-E race was organised to make Telangana the hub of electric vehicles.
Terming the case a political vendetta, the BRS leader dared the ruling Congress government to have a debate on the issue in the Assembly.
It tried to stall the proceedings during the recent Winter session to press the demand for a debate. However, the Congress government argued that an issue which is under investigation can’t be debated in the House.
KTR, who had earlier declared that he was ready to go to jail, approached the High Court, seeking orders to quash the FIR.
He argues that when FEO confirmed that it received the money, where was the corruption? The BRS leader received some relief as the High Court barred ACB from arresting him by the end of the current month.
ED registers case against KTR
After the FIR was booked by the ACB, the ED was also quick to enter the scene by registering an Enforcement Case Information Report under the Prevention of Money Laundering Act against KTR, Arvind Kumar and BLN Reddy.
The central agency has now asked to appear before it on January 7, while Arvind Kumar and BLN Reddy have been directed to appear on January 2 and 3, respectively.
The ED has also initiated a parallel investigation under the Foreign Exchange Management Act (FEMA) to examine possible violations.
As per the original agreement, the government’s role was limited to providing infrastructure and civic amenities for the race.
There are allegations that HMDA transferred funds despite not being a direct party to the agreement.
The ED is also probing whether financial commitments exceeding Rs 600 crore for upcoming seasons violated legal and financial protocols.
While rejecting the demand for a debate in the Assembly, Telangana Chief Minister A. Revanth Reddy claimed that his government saved more than Rs 500 crore by refusing to transfer further money for the Formula-E car race after the previous BRS government had transferred about Rs 55 crore to a foreign company in alleged violation of rules.
On KTR releasing to media the photographs of Revanth Reddy’s meeting with Formula E Operations (FEO) co-founder Albert Longo, the Chief Minister said three to four days after he assumed office in December last year, FEO representatives met him.
“They told me that they had an agreement with KTR for Rs 600 crore and wanted the government to conduct the race again and release the remaining money. I refused to do so. Why should the government spend Rs 600 crore to conduct a car race,” he asked and alleged that KTR had planned to loot the money in the name of the Formula-E race.
This is the first corruption case booked against the family of BRS supremo and former Chief Minister K. Chandrasekhar Rao (KCR) after Congress came to power a year ago.
ED case against Kavitha
Incidentally, the case booked by ED is the second against the family of KCR. His daughter and BRS MLC K. Kavitha was arrested by the ED in March in the Delhi excise policy case.
While she was in judicial custody in the case booked by the ED, the Central Bureau of Investigation (CBI) also got the court’s approval to arrest her. Kavitha, also a former MP, was released from Tihar Jail after more than five months when the Supreme Court granted her bail.
Kaleshwaram enquiry into Harish Rao’s role
After KCR’s daughter Kavitha, son KTR, the BRS Chief himself, and his nephew and former State Irrigation Minister T. Harish Rao appear to be on the radar of the Congress government.
Their role in alleged irregularities in the Kaleshwaram project may come under the scanner of the Justice Ghose Commission investigating the case.
The Commission, which is in the final stage of its probe, is likely to summon them to record their statements regarding allegations of cost escalation in the project and poor maintenance of the three barrages that suffered damages due to inadequate operational protocols.
The Commission was originally expected to submit its report to the government by the end of its term on December 31, but the final report is now likely by late January or February.
A few weeks after assuming office, Chief Minister Revanth Reddy had ordered two judicial inquiries — one into the alleged irregularities in the execution of Kaleshwaram and the second into Bhadradri and Yadadri thermal power projects and power purchase agreement with the Chhattisgarh government.
The Commission of Inquiry headed by former Supreme Court judge M.B. Lokur, which probed thermal power plants and power purchase agreements, submitted the report in October.
The Commission’s report is yet to be made public but understood to have faulted the previous government and the decision-makers in its report both on the execution of the two power projects and the power purchase agreement.
“There were many scams during the previous regime. There were allegations of phone tapping, misuse of Dharani portal, Kaleshwaram and 4-5 other scams,” State Revenue Minister Ponguleti Srinivasa Reddy had said while predicting political fireworks.
“Whether those involved should be arrested or sent to life imprisonment or the money should be recovered from them are all issues which courts will decide,” he added.
