The Telangana Governor has formally approved the Anti-Corruption Bureau’s request to prosecute Bharat Rashtra Samithi (BRS) working president KT Rama Rao in the high-profile Formula E race case, clearing the way for the agency to move ahead with its charge sheet. This approval marks a significant development in a case that has been politically contentious since the Congress government took power in December 2023.
The case centres on alleged financial irregularities amounting to roughly ₹55 crore, including substantial payments made in foreign currency. These payments were sanctioned during the previous BRS administration for the Formula E race planned for February 2024. The event, however, was cancelled once the new government assumed office, although Hyderabad had previously hosted the international race in February 2023. Investigators claim that payments were made “without authorisation” and in violation of both procedural norms and financial rules.
The ACB had submitted a formal request to the Governor on September 9 seeking prosecution sanction, as required under the Prevention of Corruption Act for public servants. The approval has been granted after nearly ten weeks of scrutiny, enabling the agency to continue its investigation against all the accused.
Along with KTR, the ACB is also prosecuting senior IAS officer Arvind Kumar and former HMDA chief engineer BLN Reddy. The three were booked in December 2024 under several provisions of the Prevention of Corruption Act as well as sections of the IPC related to criminal misappropriation, breach of trust, conspiracy and criminal misconduct. The agency has indicated that it will now proceed toward filing a comprehensive charge sheet.
KTR, who was earlier examined by the ACB, has repeatedly dismissed the allegations. He has argued that the transfer of funds to Formula E organisers was an administrative decision taken in his capacity as Municipal Administration Minister. He has insisted that the payments remain accounted for, that no individual benefited personally, and that the intention was solely to secure Hyderabad’s place on the international racing calendar. Emphasising his willingness to cooperate, he has said he is ready to undergo a lie-detector test and has accused the Congress government of pursuing a politically motivated case.
The sanction for prosecution had become a flashpoint in recent weeks. Chief Minister A Revanth Reddy publicly alleged that the file seeking approval to prosecute KTR had been “stuck with the Governor” for close to two months. At a campaign event for the November 11 Jubilee Hills by-election, he accused both the BRS and the BJP of shielding one another, claiming there was an “adhesive bond” between them.
Revanth Reddy also escalated his accusations, claiming that KTR collected ₹50 crore in electoral bonds from a company shortly after awarding a contract related to the Formula E event. He said that the ACB had sought permission to arrest KTR based on what the government believes is substantial evidence. He also questioned the silence of central agencies, asking why neither the Centre nor the CBI had taken action in alleged irregularities surrounding the Kaleshwaram project, and why no sanctions were being granted to arrest former chief minister KCR, Harish Rao or KTR.
The Chief Minister further suggested that the BJP was quietly assisting the BRS in the Jubilee Hills bypoll and hinted once again at the possibility of the BRS eventually merging with the BJP — a claim he tied to earlier comments made by suspended BRS MLC K Kavitha.
With the Governor’s approval now granted, the case is expected to move swiftly, with the ACB preparing to conclude its investigation and file its charge sheet in the coming weeks.
