Telangana’s political circuit is abuzz with the curious case of the Formula E race in Hyderabad—held with fanfare in February 2023—in which the then municipal administration and urban development (MAUD) minister and BRS working president K T Rama Rao stands as the first accused. The charge against KTR and two other officers, including special chief secretary Arvind Kumar, is that they flouted several rules. While politics as usual takes the front seat, we believe there is more to it than meets the eye.
A cursory glance at the agreements show what is at stake. The BRS, which was in power till December 2023, sought to bring the race to Hyderabad ostensibly to put the city on the world’s racing map and promote electric vehicles. The government signed a tripartite agreement with the UK-based Formula E Operations (FEO) and sponsor Ace Nxt Gen, a Greenko India subsidiary, to host four seasons in Hyderabad. The first one went without a hitch; but then the sponsor reneged on the agreement, prompting the government to step into its shoes. The Hyderabad Metropolitan Development Authority coughed up Rs 54.88 crore to FEO in two tranches in October that year on the oral instructions of KTR, which has been substantiated by the other two accused. A new agreement was inked between MAUD and FEO. The problem is without a sponsor, the financial liability on the government tots up to Rs 450-600 crore. All this was done without cabinet approval, by violating RBI rules and government business rules, and without, it seems, the permission of the Election Commission, as the model code of conduct was in force.
Let the courts decide whether any corruption was involved. What is worrisome is the arbitrary manner in which payments were made to a foreign entity, lending credence to talks about the growing nexus between politicians, bureaucrats and businessmen. The government is entrusted with the responsibility of protecting public interest. If prudential norms are thrown to the wind, the institutions will lose public trust. The BRS finds itself fending off charges in the political arena, and the opposition’s responsibility to raise other important issues of public interest is relegated. The unfortunate state of affairs stems from treating government as a kind of personal fiefdom, to whatever end. That is inexcusable.