HYDERABAD: A team of ACB officials, comprising the agency’s joint director Ritira, DSP Majid Ali Khan and deputy director SVN Shivaram, on Thursday grilled former Municipal Administration minister KT Rama Rao for over seven hours as part of the investigation into the allegation of corruption in organising the Formula-E car race in 2023.
Rama Rao, accompanied by senior advocate J Ramachandra Rao, reached the heavily barricaded ACB office at Banjara Hills at 10:10 am.
According to sources, Rama Rao was reportedly asked whether he was aware of the alleged illegality in the transfer of funds to a foreign firm, the reason behind the payment at a time the Model Code of Conduct (MCC) was in force, and why no prior approval from the Cabinet or RBI was obtained.
He was also questioned about whether IAS officer Arvind Kumar or former HMDA chief engineer BLN Reddy informed him about the procedures and the reason behind the withdrawal of Ace Nxt Gen Pvt Ltd as a sponsor from the race.
Additionally, he was asked if there was any proof to back his claim that the state earned about Rs 700 crore from the event and several questions based on the statements of Arvind Kumar, Accused No. 2 in the case.
According to sources, Rama Rao countered some of the ACB’s questions with his own while clarifying others. When asked why the file related to the Formula-E race was signed but not forwarded for Cabinet approval, the former minister responded that he signed the file to promote Telangana’s reputation and facilitate the race in Hyderabad.
He told the ACB that Business Rules related to government operations and the movement of files fall entirely under the purview of the chief secretary.
Regarding allegations of corruption, Rama Rao stated that since the funds sent by the government reached FEO, the issue of corruption does not arise. He pointed out that the FIR itself clearly outlines the flow of funds and leaves no room for allegations of misuse. “The charges are baseless, and the case is illegitimate,” the former minister reportedly told the ACB.
He pointed out that all communications regarding the Formula-E race are stored in the official email account assigned to him as a minister, which is now under the state government’s control. The former minister reiterated his authority to make policy decisions as part of the government.
On the issue of Cabinet approval, Rama Rao asserted that the chief secretary and senior officials oversee Business Rules. The former minister argued that the ACB did not have the authority to question policy decisions. Noting that both state and Union governments often make policy decisions to organise sports events, he cited Andhra Pradesh’s hosting of the Afro-Asian Games as an example.
The interrogation reportedly focused on the same six or seven questions. Exiting the ACB office around 5 pm, Rama Rao revealed that the entire interrogation revolved around these questions. Sources said that at one point, the former minister asked the ACB team to arrest him if instructed by the government, instead of wasting time with repeated questions.
‘Did everything to enhance Hyd’s image’
Earlier, before entering the heavily barricaded ACB office—where access was restricted to journalists and local residents—Rama Rao said that as a minister, he did his best to enhance Telangana’s prestige and Hyderabad’s brand image.
“During the BRS regime, we did not give Rs 1,137 crore to our brothers-in-law. I did not award contracts to my son’s companies. I did not buy Land Cruisers. Revanth Reddy and his ministers know a thing or two about such activities. I am not the one who was caught giving Rs 55 lakh to buy MLAs,” he said, using harsh words for Chief Minister A Revanth Reddy.
“I did everything to enhance the image of Telangana and Hyderabad. I have not, and will not, engage in corruption, not even for half a paisa,” Rama Rao asserted.