A Year After Power Loss, KCR Family Faces Scrutiny from Investigative Agencies

Hyderabad, Dec 29 (NationPress) A senior Minister in Telangana had forecasted political drama two months ago before Diwali. However, this did not materialize, leading the opposition Bharat Rashtra Samithi (BRS) to mock the ruling Congress party over its 'empty threat'.

Fast forward two months, the state appears to be experiencing the anticipated drama, as both the Anti-Corruption Bureau (ACB) and the Enforcement Directorate have initiated actions against BRS Working President and former Telangana Minister K. T. Rama Rao over alleged discrepancies related to the Formula-E car race conducted in Hyderabad last year when the BRS was in power.

With Governor Jishnu Dev Varma granting authorization for K. T. Rama Rao's prosecution, the ACB moved quickly to file a case against the former Minister.

The ACB lodged the First Information Report (FIR) under Sections 13(1)(A) and 13(2) of the Prevention of Corruption Act, alongside Sections 409 and 120(B) of the Indian Penal Code, naming KTR as the primary accused.

Senior IAS officer Arvind Kumar and former chief engineer of the Hyderabad Metropolitan Development Authority (HMDA) BLN Reddy were identified as the second and third accused, respectively.

The anti-corruption agency has also recorded the statement of M. Dana Kishore, Principal Secretary of Municipal Administration and Urban Development, whose complaint led to the case being filed.

This action seems to be preparing the groundwork for issuing notices to the accused.

The allegations focus on the payment of over Rs 54.88 crore to UK-based Formula-E Operations Limited (FEO) and others in significant violation of established protocols.

Denying the corruption allegations, KTR asserted that the Formula-E race was organized to establish Telangana as a hub for electric vehicles.

Labeling the case as political vendetta, the BRS leader challenged the ruling Congress government to engage in a debate on the matter in the Assembly.

During the recent Winter session, they attempted to halt proceedings to demand a debate.

However, the Congress government contended that an ongoing investigation cannot be debated in the House.

KTR, who previously stated he was prepared to face imprisonment, approached the High Court seeking to dismiss the FIR.

He argues that since FEO confirmed receipt of the funds, where is the corruption?

He received a temporary reprieve as the High Court prohibited the ACB from arresting him by the end of the current month.

Following the FIR by the ACB, the ED quickly registered an Enforcement Case Information Report under the Prevention of Money Laundering Act against KTR, Arvind Kumar, and BLN Reddy.

The central agency has summoned them to appear on January 7, and Arvind Kumar and BLN Reddy have been instructed to appear on January 2 and 3, respectively.

The ED has also started a simultaneous investigation under the Foreign Exchange Management Act (FEMA) to assess potential violations.

According to the original agreement, the government's role was restricted to providing infrastructure and civic amenities for the race.

Allegations have arisen that HMDA disbursed funds despite not being a direct party to the agreement.

The ED is also investigating whether financial commitments exceeding Rs 600 crore for future seasons contravened legal and financial protocols.

While declining the demand for a debate in the Assembly, Chief Minister A. Revanth Reddy claimed his government saved over Rs 500 crore by refusing to transfer additional funds for the Formula-E car race after the previous BRS government had already transferred approximately Rs 55 crore to a foreign entity in apparent violation of regulations.

In response to KTR releasing photographs to the media showing Revanth Reddy's meeting with Formula E Operations (FEO) co-founder Albert Longo, the Chief Minister stated that shortly after taking office in December last year, he met with FEO representatives.

"They informed me of an agreement with KTR for Rs 600 crore and requested the government to host the race again and release the remaining funds. I declined. Why should the government invest Rs 600 crore in a car race?" he questioned, alleging that KTR intended to misappropriate the funds under the guise of the Formula-E race.

This marks the first corruption case filed against the family of BRS leader and former Chief Minister K. Chandrasekhar Rao (KCR) since the Congress assumed power a year ago.

Notably, the case initiated by the ED is the second against KCR's family. His daughter, BRS MLC K. Kavitha, was arrested by the ED in March related to the Delhi excise policy case. While in judicial custody in the ED's case, the Central Bureau of Investigation (CBI) also received court approval to arrest her.

Kavitha, a former MP, was released from Tihar Jail after over five months when the Supreme Court granted her bail.

Following KCR's daughter Kavitha, KTR, BRS Chief KCR himself, and his nephew and former State Irrigation Minister T. Harish Rao appear to be under scrutiny from the Congress government. Their involvement in alleged irregularities within the Kaleshwaram project may be examined by the Justice Ghose Commission, which is currently investigating the case.

The Commission, nearing the end of its inquiry, is expected to summon them to provide statements regarding allegations of cost overruns in the project and poor maintenance of three barrages that suffered damages due to insufficient operational protocols.

The Commission was initially anticipated to submit its report to the government by December 31, but the final report is now expected by late January or February.

Shortly after taking office, Chief Minister Revanth Reddy mandated two judicial inquiries—one into alleged irregularities in the Kaleshwaram execution and another regarding the Bhadradri and Yadadri thermal power projects and the power purchase agreement with the Chhattisgarh government.

The Commission of Inquiry, led by former Supreme Court judge M.B. Lokur, which investigated thermal power plants and power purchase agreements, submitted its report in October.

The findings of the Commission are yet to be made public but are believed to have criticized the previous government and decision-makers regarding both the execution of the two power projects and the power purchase agreement.

"Numerous scams occurred during the previous administration. Allegations include phone tapping, misuse of the Dharani portal, Kaleshwaram, and several other scams," stated State Revenue Minister Ponguleti Srinivasa Reddy while forecasting political drama.

"Whether those implicated should face arrest or life imprisonment, or if the funds should be recovered from them, are matters for the courts to decide," he added.