ACB Submits Formula E Race Report To Telangana Government, KTR Calls Case Fabricated

Last Updated:September 09, 2025, 19:35 IST

The ACB has sought prosecution sanction against former minister K.T. Rama Rao and IAS officer Arvind Kumar

Sources indicate that once approval is granted, the bureau will proceed with filing a chargesheet. (PTI File)

The Telangana Anti-Corruption Bureau (ACB) has submitted a detailed report to the state government in the ongoing Formula E race case, seeking prosecution sanction against former minister K.T. Rama Rao and IAS officer Arvind Kumar.

Sources indicate that once approval is granted, the bureau will proceed with filing a chargesheet. The ACB has already questioned KTR twice and Arvind Kumar thrice in connection with the case.

Reacting to the developments, KTR dismissed the allegations, calling the case fabricated. “This is a cooked-up case. Not a single rupee changed hands. I am ready to face a lie detector test right here — whether in the presence of Chief Minister Revanth Reddy or the ACB DGP — in front of the media. The truth will be crystal clear,” he said.

What is the Formula E case?

The case was registered on December 18, 2024, naming KTR as Accused No.1 (A1), IAS officer Arvind Kumar as Accused No.2 (A2), and HMDA Chief Engineer BLN Reddy as Accused No.3 (A3). It stemmed from a complaint filed on October 18, 2023, by then MAUD Principal Secretary Dana Kishore, who alleged that payments were illegally made to a foreign company in violation of rules, causing a financial loss of ₹54.88 crore to the state exchequer.

As per the FIR, a tripartite agreement was signed on October 25, 2022, between Formula-E Operations (UK), Ace NextGen Pvt Ltd (India), and Telangana’s MAUD to host Seasons 9–12 of the event. Although the sponsor was expected to bear all expenses, HMDA spent ₹12 crore on track arrangements for the February 2023 race. Later, KTR approved further payments exceeding Rs 110 crore, including taxes, for Season 10. Of this, two instalments — Rs 22.69 crore and Rs 23.01 crore — were transferred from Hyderabad’s Himayatnagar Indian Overseas Bank branch to FEO’s UK account in October 2023 without approvals from the Finance Department or the Election Commission, despite the model code of conduct being in force.

The controversy deepened when FEO withdrew from the 2022 agreement on October 27, 2023, without the consent of other partners. Just three days later, however, a new agreement was signed on October 30, 2023, making the Telangana government solely responsible for race expenses. The state government later declared this agreement fraudulent and unconstitutional, citing bypass of Cabinet approval, violation of Article 299 of the Constitution, and undue benefits extended to private entities at the expense of public funds.

The ACB has booked charges under the Prevention of Corruption Act (Sections 13(1)(a) and 13(2)) and IPC Sections 409 and 120B. If proven, the charges could attract punishments of up to life imprisonment.

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