Overview

• The Telangana ACB submitted its prosecution report to the state government on September 9 after months of questioning, naming K. T. Rama Rao as Accused No. 1 alongside IAS officer Arvind Kumar and HMDA engineer B. L. N. Reddy.
• The FIR cites Prevention of Corruption Act provisions and IPC Sections 409 and 120B over alleged irregular payments that investigators say caused a ₹54.88 crore loss to the exchequer.
• Case records describe transfers to Formula‑E Operations in September–October 2023 without required approvals, including during the poll code, which also triggered an additional ₹8.06 crore tax burden on HMDA.
• Investigators point to a contract sequence in which FEO exited a 2022 tripartite pact on October 27, 2023, followed by a new October 30 agreement that shifted financial responsibility to the state, with ₹45.7 crore sent despite the termination noted in the FIR.
• K. T. Rama Rao rejects the allegations as fabricated, says every rupee is accounted for and acknowledges authorizing ₹46 crore to a designated account, while challenging the chief minister to a lie‑detector test.