HYDERABAD: If highly placed sources are to be believed, Governor Jishnu Dev Varma is set to give his consent to a request by the Anti-Corruption Bureau (ACB) seeking permission to register a case against former minister and BRS working president KT Rama Rao for alleged misuse of power and diversion of funds — sanctioned bypassing established procedures — for conducting the Formula-E race.
The sources confided that the Governor was likely to approve the ACB’s request under Section 17A of the Prevention of Corruption Act.
Charges of misappropriation of public funds and conspiracy may be included in the case, the sources said.
If consent is granted by the governor, the ACB is likely to move quickly by registering the case, issuing notices, and possibly conducting raids on certain private individuals and officials connected to the alleged scam.
Request for nod sent to Guv 4 weeks ago
The investigation focuses on the release of Rs 55 crore — without cabinet approval or proper procedural clearances — to a company that conducted the Formula-E race. ACB sources say that the funds were authorised by the then principal secretary Arvind Kumar on the directions of Rama Rao. The ACB is scouring evidence to ascertain whether the funds allegedly diverted were used to acquire assets.
The request for prosecution was submitted to the Governor four weeks ago who in turn referred it to the Attorney General for legal opinion.
Sources said the Attorney General raised no objections, paving the way for the Governor’s approval, which may be sent to the ACB as early as next week.
If registered, the case could also pave the way for the Enforcement Directorate to investigate if there were any violations of FEMA and other financial regulations as the investigators suspect that the funds were diverted to foreign entities.
Meanwhile, Rama Rao has vehemently rejected the allegations, denying any misuse or diversion of funds. He also made it clear that he would cooperate with any inquiry. “I am ready to face any investigation and even go to jail if needed,” he had stated.