Formula E Controversy: Court Rejects Plea to Quash FIR

On January 7, 2025, the Telangana High Court refused to quash the FIR filed against K. T. Rama Rao, an MLA and former Minister, in the Formula E race case.

In this case, a tripartite agreement was executed between the Govt department, Formula E Operations (FEO), and ACE Nxt Gen Private Limited in October 2022 for conducting Seasons 9 to 12 of Formula E races in Hyderabad. In line with the said tripartite agreement, Season 9 of the event took place as scheduled, but the race promoter (ACE Nxt Gen) did not confirm its involvement in Season 10. In view of the event’s significance, the Hyderabad Metropolitan Development Authority (HMDA) was instructed to take on the dual responsibility of both host city and promoter until a new promoter was secured. Consequently, the HMDA executed a revised agreement in October 2023 and made payments to FEO, securing Hyderabad’s spot in the Season 10 calendar.

However, after the Congress Government assumed office in December 2023, the Hyderabad E-Prix, scheduled for February 2024, was cancelled. Formula E attributed this cancellation to MAUD’s decision not to fulfil the Host City Agreement dated October 30, 2023.

According to the FIR lodged by the Anti-Corruption Bureau against Rao, Arvind Kumar (former Special Chief Secretary of the MAUD department) and BLN Reddy (former HMDA chief engineer), it is claimed that an amount of INR 55 crore was released prior to the execution of the agreement, the revised agreement was executed, and a partial payment was made while the Model Code of Conduct (MCC) announced by the Election Commission of India (ECI) was in effect in the State of Telangana. Payments were made in foreign currency in violation of RBI guidelines, for which the Government of Telangana incurred fines. This case was registered under the provisions of the Prevention of Corruption Act, 1988, and the Indian Penal Code, 1860.

On January 15, 2025, the Supreme Court rejected Rao’s plea that the FIR was politically motivated. Last month, the Enforcement Directorate (ED) also questioned Rao.

Rao has since maintained that his actions were in the interest of the State and that the Formula E race was part of the vision to make Hyderabad a pivotal hub for sustainable mobility.