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What is the Formula E Scam
The phrase “Formula E” is making waves in Telangana political circles, especially after media reports suggested that former IT Minister K.T Rama Rao (KTR) might face arrest over his alleged involvement in a financial scam linked to the event. Here’s an in-depth look a the controversy, the allegations, and the current status of the case.
What is the Formula E Scam
What is the Formula E Scam
What is Formula E?
Formula E is a premier electric car racing event designed to promote sustainability and green energy. The event saw electric cars racing on the streets of Hyderabad, with the objective of bringing global recognition to the city. The initiative was spearheaded by the then BRS government, led by KTR, who played a key role in organizing the event. What is the Formula E Scam.
The Tripartite Agreement
On October 25, 2022, a Tripartite Agreement was signed between Formula E Operations Limited (UK), Telangana Municipal Administration and Urban Development (MA&UD) Department, and Ace Nxt Gen Pvt. Ltd. This agreement aimed to conduct Formula E races in Hyderabad from 2023 to 2026. The role of the Telangana government was restricted to providing infrastructure and civic services for the event.
The Allegations and Key Charges
The scam allegations center around unauthorized financial transactions made by the Hyderabad Metropolitan Development Authority (HMDA) on behalf of the Telangana government. Here are the key points of the charges:
- Unapproved Payments:
- It is alleged that Rs 54.88 crore was paid by HMDA for the 10th season of Formula E without obtaining mandatory approvals from the Telangana Cabinet, Finance Department, or Law Department.
- An additional amount of Rs 8.06 crore was reportedly paid as withholding tax to the Income Tax Department.
- Unilateral Agreement Termination and New Contract:
- On October 27, 2023, Formula E Operations unilaterally terminated the original agreement without seeking the contest of all involved parties.
- A new agreement was signed on October 30, 2023, with the Telangana government committing over Rs 600 crore for future seasons of the event.
- Payments were allegedly made in advance for these agreements, despite the absence of any formal contract at the time.
- Verbal Authorization by KTR:
- It is alleged that KTR gave cerbal instructions to HMDA officials to transfer Rs 55 crore to a London based company.
- This transfer was reportedly made without the approval of the state cabinet, Finance Department, or Law Department.
What is the Formula E Scam
The Role of the Anti-Corruption Bureau (ACB)
Following these allegations, the Anti Correction Bureau (ACB) launched an investigation into the alleged scam. The ACB’s goal is to identify those responsible for the financial mismanagement and the loss incurred by the state exchequer. The investigation is ongoing, and the possibility of arrests has been a significant point of discussion in political and media circles.
KTR’s Response to the Allegations
KTR has firmly denied the allegations and maintains that he has no involvement in any financial wrongdoing related to the Formula E event. He has gone a step future by challenging Telangana Chief Minister Revanth Reddy to a debate on the issue in the state assembly. This move is seen as KTR’s attempt to clear his name and present his version of the story. What is the Formula E Scam.
Public and Political Reactions
The scandal has led to a political storm in Telangana. CM Revanth Reddy has been vocal in demanding accountability from KTR and the BRS Party. With accusations of financial mismanagement and unauthorized payments, the controversy has become a major talking point in the lead up to the state elections.
Conclusion
The Formula E scam has put a spotlight on financial accountability and transparency in Telangana’s administration. The allegations of unauthorized payments, verbal instructions for fund transfers, and the revision of agreements without proper approvals have raised serious questions about governance. While KTR has categorically denied any involvement, the ACB’s investigation is ongoing, and political debates are heating up. The outcome of the investigation could have a significant impact of Telangana’s political landscape.
What is the Formula E Scam
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