HYDERABAD: The Anti-Corruption Bureau (ACB) officials are expected to register a First Information Report (FIR) in a day or two for the alleged misappropriation of Rs 55 crore while planning for the 2nd edition of Formula E racing. Former minister (MA&UD) and BRS working president KT Rama Rao, former principal secretary (MA&UD) Arvind Kumar, and HMDA chief engineer BLN Reddy are expected to be accused in the case.
During the preliminary enquiry conducted by ACB, the officials found that these three persons were allegedly involved in procedural violations, which led to a loss to the exchequer. "The three suspects who were involved in the transfer of Rs 55 crores to Formula E Operations (FEO) were supposed to take financial approvals from the cabinet. Without taking the cabinet's consent, they transferred the money to FEO," sources privy to the investigation told TOI.
On Monday night, ACB officials were still awaiting the Governor’s order to register a case against KTR and two others. "The Governor has given the consent, but the order is formally expected to be received by ACB on Tuesday. Once we get the order, we will register the FIR in a day or two," sources said.
For the three suspects who will be booked in this case, the competent authority to give consent by registering the case are different. For booking the case against BLN Reddy, it is the incumbent principal secretary (MA&UD).
Whereas in the case of IAS officer Arvind Kumar, the competent authority is the chief secretary. Similarly, for the former minister and sitting MLA KTR, it is the governor. "Already, ACB got clearance to book the case against Arvind Kumar and Reddy. Once ACB formally gets the governor’s order against KTR, the agency will register the case," sources in the govt said.
When the first season of Formula E was held in 2023 at NTR Marg, the govt had a sponsor. But when the govt was in the process of holding the 2nd edition in Hyderabad, the previous sponsor backed out. To fill the gap, the then govt itself paid Rs 55 crores, which was done in alleged violation of laid-down financial procedures. The money was directly transferred to the London-based Formula E Operations (FEO) for organising the 2nd edition in Hyderabad.
Initially, the officials are expected to focus on these three suspects without involving FEO.
During the course of the investigation, ACB is expected to involve the Enforcement Directorate too, to probe if there was any violation of the FEMA Act.