Everything you should know about Telangana Formula E Race issue
KT Rama Rao refutes charges of corruption in Formula E Race issue and asserts thatthat all decisions were lawful and aimed at bolstering Hyderabad’s global image. He contends that he cannot be held responsible for procedural lapses, if any. He went on to charge the Congress government with partisan motives in leveling unsubstantiated claims.
Hyderabad: After attracting global attention in February 2023, Formula-E is now in the news for all wrong reasons. The event, aimed to boost Hyderabad’s growth and elevate it to the global stage, ended up in a political controversy, due to the change in the government. As a result, the city lost a crucial opportunity to become a hub for the electric vehicle (EV) industry.
While the ruling Congress registering a corruption case against the then Municipal Administration Minister KT Rama Rao, the latter denied the charges, pointing out that all the decisions were taken within the purview of law and there was no wrongful gain on his part. He went on to charge the Congress government with partisan motives in leveling unsubstantiated claims.
Here is an explainer on the entire issue:
What is the Formula-E race?
The Formula-E race is a premier electric car racing championship held on street circuits in prominent cities worldwide. Established to promote clean energy and encourage the adoption of electric vehicles (EV). The race has taken place in cities like London, Berlin, Beijing and Seoul over last decade.
Who are popular motosports partners?
Top global companies like McLaren, Jaguar, Mahindra and Nissan participate, underscoring the race’s prestige and environmental commitment.
How did Formula-E come to Hyderabad?
In February 2023, Hyderabad became India’s first city to host the Formula-E race, thanks to the initiative of the then Minister KT Rama Rao. This race was a part of the then BRS government’s E-Mobility Week, aimed at promoting EVs and positioning Hyderabad as a global hub for sustainable development. The BRS government has also entered into a long-term agreement with the event organisers to host future races in Hyderabad for a total four years, aligning with its sustainable development goals.
What are the key takeaways of the Hyderabad E-Prix?
Over 35,000 spectators attended, including international visitors. Generated direct and indirect revenue exceeding Rs 700 crore through hospitality, advertising and tourism. Elevated Hyderabad’s statues alongside global cities hosting Formula-E events.
What are the charges against KT Rama Rao?
The Congress government has accused KT Rama Rao of corruption amounting to Rs 600 crores in organising the Formula E-Race in Hyderabad, claiming a violation of the election code of conduct and procedural lapses which caused financial burden on the State exchequer. The ACB filed a case against Rama Rao, the then Special Chief Secretary K Arvind Kumar and other officials.
How has KTR responded to these accusations?
Rama Rao has categorically denied all allegations, calling them baseless and politically motivated. He stated that the decision to host the Formula-E Race was lawful and aimed at enhancing Hyderabad’s global prestige. He emphasised that there was no conspiracy or corruption involved in the decision-making process.
What legal action has KTR taken on ACB case against him?
Rama Rao has filed a quash petition in the High Court rejecting the government’s claims. He questioned the basis of the allegations, particularly why no case was filed against the Formula-E Race organisers if corruption had occurred.
What does KTR say about the Rs 55 cr expenditure?
Rama Rao explained that the Rs 55 crore payment was made transparently through Indian Overseas Bank, adhering to HMDA’s guidelines. He reiterated that HMDA is an autonomous body which does not require approvals from the State Cabinet. He clarified that the Rs 8 crore mentioned by the government was tax-related and HMDA can reclaim as the event was not held.
What evidence supports KTR’s claims?
Rama Rao cited a Nielsen report stating that the Formula-E race generated Rs 700 crores in economic benefits for the State. He also pointed out that no notice was issued by the Election Commission of India till date, undermining claims of a Model Code of Conduct (MCC) violation by the ACB. Further, he pointed out that the State government has no role in MCC violations and questioned its intervention, unless there is a political motive. Since the Model code of conduct came in to the force on October 9, 2023, the petitioner become functus officio. The petitioner is no way concerned with the alleged irregularities if any.
What is KTR’s response to charges of corruption amounting to Rs 600 cr due to financial commitment of about Rs 600 cr for next three years?
The contention that there is a financial commitment of Rs 600 Crores along with additional recurring expenditure for next three years is not correct, the figures were inflated without any substance. In fact by not making the balance payment to the FEO (Formula E Operating Limited), the State has lost substantial revenue.
Why were no prior permissions obtained from Finance Department before entering into new agreement or getting clearances from respective authorities for foreign remittances?
KTR declared that he cannot be held responsible for the procedural requirements which is handled by the authorities concerned in the department. The procedural irregularity in execution of the agreement does not infer that there was a fraudulent intention to cause loss to the State exchequer and wrongful gain to those involved.
On entering into a fresh agreement?
The execution of the agreement is only a formality and in view of the timelines payments were made to ensure that Hyderabad does not miss out on Season 10 event. However, Payments made cannot be treated as impropriety on the part of the officials.
How does KTR view the accusations?
Rama Rao dismissed the allegations as partisan attempts to malign his reputation, asserting that the actual loss to the event stemmed from poor decisions by Revanth Reddy’s government. The government failed to provide any concrete evidence of wrongful personal gain, except for making baseless allegations. If there is any loss due to Formula E race, it is only because of Chief Minister A Revanth Reddy’s senseless decisions and ill-conceived actions.
