Hyderabad, Dec 19 : Telangana's Anti-Corruption Bureau (ACB) on Thursday registered an FIR against BRS Working President and former minister K.T. Rama Rao in connection with alleged financial irregularities during the Formula E race held in Hyderabad last year.

The anti-graft agency named K. T. Rama Rao (KTR) as Accused No. 1 (A-1) in the FIR.

Former Special Chief Secretary, Municipal Administration, Arvind Kumar has been designated as (A-2), and Hyderabad Metropolitan Development Authority (HMDA) Chief Engineer B.L.N. Reddy as A-3.

The case has been booked under four sections of the Prevention of Corruption Act.

The FIR was registered two days after the state Cabinet gave its nod following Governor Jishnu Dev Varma giving permission to try KTR.

There are allegations that Rs 55 crore was transferred from HMDA funds to Formula E Operations (FEO) without requisite approvals.

KTR, as then Minister for Industry, allegedly sanctioned funds for the race bypassing established procedures.

Deputy Chief Minister Mallu Bhatti Vikramarka had said in January that the Formula E race was conducted last year by the previous government to benefit a company and Hyderabad and Telangana were in no way benefited from it. The then government had agreed to pay Rs 110 crore to the company and out of this, Rs 55 crore were paid.

The remaining amount was to be paid in two instalments.

Formula E cancelled the second Formula E race (Season 10) scheduled in Hyderabad on February 10, 2024. The announcement was made after a decision by the Municipal Administration and Urban Development Department (MAUD) of the Telangana government not to fulfil the Host City Agreement signed on October 30, 2023.

Formula E Operations (FEO) said it was left with no choice other than to formally give notice to MAUD for breach of contract.

The Congress government issued notice to senior IAS officer Arvind Kumar for 'serious violations' with regard to the agreement. The official was asked to explain why the huge financial expenditure of Rs 46 crore, plus the tax amount of Rs 9 crore, was paid from the Hyderabad Metropolitan Development Authority (HMDA) resources even before the agreement was signed.

KTR defended the previous government's decision to bring the Formula E race to Hyderabad and declared that he was ready to go to jail. Denying the allegations of corruption, he said he tried to elevate Hyderabad's global image, especially through the Formula E race.

/IANS