Date: December 20, 2024
What Is the Formula E Scam? KTR Alleged Involvement Explained
What Is the Formula E Scam?
The Formula E scandal is creating a buzz in Telangana politics. Former IT Minister KTR, who played a key role in bringing this event to Hyderabad, is now facing allegations of financial irregularities. Reports suggest that he may have authorized unauthorized payments, sparking a detailed investigation. Let’s break down the facts surrounding the Formula E scam and KTR’s involvement.
The Formula E Event: A Global Vision
Formula E is a global racing event featuring electric cars. The Telangana government organized it to highlight Hyderabad as a hub for innovation and eco-friendly initiatives.
On October 25, 2022, a Tripartite Agreement was signed between Formula E Operations Limited (UK), Telangana’s MA&UD Department, and Ace Nxt Gen Pvt. Ltd.. This agreement aimed to host Formula E races in Hyderabad from 2023 to 2026. The government’s role was to provide infrastructure and civic support.
Allegations: Unauthorized Payments and Financial Concerns
The controversy started when the Hyderabad Metropolitan Development Authority (HMDA) allegedly paid ₹54.88 crore for the 2023 event. These payments were made without getting approval from the cabinet or other required authorities.
Additionally, an ₹8.06 crore withholding tax was paid to the Income Tax Department. Critics argue that these transactions were not approved by the Finance or Law Departments.
In October 2023, Formula E Operations terminated the original agreement without consulting all parties. A new agreement signed days later committed over ₹600 crore for future races. Allegedly, these agreements lacked proper authorization, and payments made in advance before finalizing terms.
KTR’s Alleged Role
KTR accused of verbally instructing HMDA officials to transfer ₹55 crore to Formula E Operations, a London-based company. This payment reportedly bypassed approval from the cabinet and finance department.
The Anti-Corruption Bureau (ACB) has launched an investigation to uncover the truth behind these transactions and their impact on the state’s finances.
KTR’s Defense
KTR has denied any wrongdoing. He claims the allegations politically motivated and aimed at damaging his reputation. He defended the event as a visionary step to improve Hyderabad’s global image.
KTR also challenged Telangana Chief Minister Revanth Reddy to a debate in the state assembly to prove his innocence.
Ongoing Investigation
The ACB’s investigation is ongoing. If the allegations against KTR are proven, they could have serious political and legal consequences. This case is now a focal point in Telangana politics, with both the ruling and opposition parties using it to their advantage.
The Formula E case continues to draw public attention, with further developments expected in the coming weeks.