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Fact Check: Did the BRS govt. misappropriate Rs. 55 cr for Formula-E race?

Congress party mounted a vicious campaign against the ABB Formula-E Race, an event that brought global recognition and substantial economic benefits to the city. The race, which took place for the first time in India in February 2023, was a groundbreaking achievement during the BRS rule. 

Now, with the Congress-led Revanth government in power, the decision to unilaterally cancel the 2024 Hyderabad race and launch a smear campaign threatens the city’s brand image. However, there is not an iota of truth in the allegations that the BRS government misappropriated Rs. 55 crore for the race.

The Telangana government initially agreed to host the Formula-E race for four years, securing sponsorships from companies like Greenco for the first event. However, in preparation for the second race in February, sponsorship issues arose. 

By June-July, before the state assembly elections, FIA representatives informed the government that without sponsors, they couldn’t organize the race. In response, the then minister KTR assured organizers they would secure sponsorships by February, and HMDA allocated Rs. 50 crore to cover interim expenses and race arrangements. KTR has clarified the same in a press meet today in Telangana Bhavan.

As the nodal agency, HMDA managed the race funds independently. The decision to allocate funds was solely to ensure the race’s success and was done within protocol. HMDA, as an autonomous body chaired by the Chief Minister and vice-chaired by the Municipal Administration Minister, handles the funds separately from the state finance department, and no approval is needed from the finance department. The funds were transferred directly to the race organizers, and if the event had proceeded, the allocation of funds would likely not have drawn scrutiny.

However, once the Congress government assumed power, they decided in December to cancel the Formula E race. With the event now called off, the February 2024 race was canceled, and the race management company declined to return the funds, citing the cancellation by the state as the cause. 

Despite Congress’s accusations of misappropriation or money laundering, there is no evidence that KTR or the BRS party benefited from the funds. Instead, the hasty decision to pull out of the agreement ultimately favored the Formula-E organizers, who were under no contractual obligation to refund the amount.