Despite initial aggressive posturing, the newly elected Congress government in Telangana, led by Chief Minister A. Revanth Reddy, appears to be slowing down on its plans to take legal action against former Chief Minister K. Chandrasekhar Rao (KCR) and his family. While the government has hinted at possessing incriminating evidence, especially concerning alleged financial misconduct in projects like the Formula E racing event, it now seems to be adopting a more cautious approach
Just a few weeks ago, Revanth Reddy’s cabinet colleague, Ponguleti Srinivas Reddy, raised eyebrows by publicly suggesting that KT Rama Rao (KTR), son of KCR and a prominent leader in the Bharat Rashtra Samithi (BRS), could face imminent arrest over his alleged involvement in the misuse of funds related to the Formula E race held in Hyderabad. According to Ponguleti, KTR reportedly gave oral instructions to release ₹700 crore for the racing event without proper authorization.
However, in a surprising turn, Revanth Reddy recently clarified that his government is in no rush to take action against the Kalvakuntla family until investigations are fully concluded. This shift in stance raises questions about what might be holding back the state government from moving forward, especially after making bold claims of possessing substantial evidence.
The Kalvakuntla family is currently facing a series of serious allegations:
- KCR – Accused of financial irregularities in the multi-crore Kaleshwaram irrigation project, allegedly inflating costs through frequent design changes.
- KTR – Under scrutiny for his alleged role in the Formula E racing scam, where funds were reportedly released without proper approvals.
- Kavitha – Allegedly involved in the Delhi Excise Policy scam, where she is accused of leading a “South Lobby” to manipulate liquor prices. Kavitha reportedly spent some time in prison before securing bail from a Delhi court.
Despite these allegations, Revanth Reddy appears reluctant to endorse his colleague Ponguleti’s claims of a pre-Diwali “political bombshell” against the BRS leadership.
The controversy surrounding the Formula E race in Hyderabad is one of the most significant scandals facing the Kalvakuntla family. According to sources, the state Anti-Corruption Bureau (ACB) is currently investigating allegations that ₹55 crore was paid directly to the event organizers without the Finance Department’s approval. The investigation suggests that former Municipal Administration Minister KTR instructed the release of funds based on an oral directive.
The ACB, reportedly gathering evidence from the Municipal Administration and Urban Development (MAUD) department, is trying to establish the extent of KTR’s involvement. Arvind Kumar, the then Secretary of the MAUD department, has allegedly admitted to releasing funds on KTR’s instructions. The state government has also sought permission from Governor Jishnu Dev Varma to prosecute KTR in connection with the case.
Despite the emerging evidence and the urgency with which Ponguleti initially spoke, Revanth Reddy has indicated that the investigation is far from complete. This delay in action is puzzling, given the government’s earlier assertive stance.
Several factors could be contributing to this cautious approach: (a) With the BRS still wielding significant influence in Telangana, any drastic move against KCR’s family could have far-reaching political repercussions. The Congress government might be weighing the risks of escalating tensions with a powerful political rival, (b) By ensuring that investigations are thorough and evidence is ironclad, the Congress government could be aiming to avoid any legal setbacks that could be exploited by the opposition, and (c) The apparent disconnect between Ponguleti’s aggressive public statements and Revanth’s measured approach hints at possible divisions within the Congress leadership on how to proceed.
The Formula E event, held in Hyderabad in February 2023, was positioned as a high-profile international event aimed at boosting the city’s global image. The event was jointly funded by private entities like Greenko and Hyderabad Racing Limited, which invested ₹150 crore and ₹30 crore, respectively. The Hyderabad Metropolitan Development Authority (HMDA) also contributed ₹20 crore for infrastructure.
However, after the Congress government came to power, it canceled an agreement signed in October 2023 to conduct another race in February 2024. Following a new complaint by the MAUD department, the ACB has intensified its probe into alleged misappropriation of funds amounting to ₹200 crore.
Reacting to the Congress government’s decision to cancel the upcoming race, KTR criticized the move as regressive. He argued that events like the Hyderabad E-Prix enhance the city’s and India’s brand image on the global stage. His comments reflect the BRS’s stance that the Congress government’s actions are politically motivated.
As the investigation unfolds, the focus remains on whether the Congress government, under Revanth Reddy, will move forward with prosecuting the Kalvakuntla family or continue to delay action. The probe’s outcome could have significant political implications for both the Congress and the BRS, especially with upcoming elections on the horizon.
While Ponguleti’s dramatic statements initially suggested a quick resolution, it now appears that Revanth Reddy is treading more carefully. For now, the people of Telangana are left waiting to see if this high-stakes political drama will lead to concrete action or fizzle out amid internal political maneuvering.
Meanwhile, KTR has reportedly travelled to Malaysia to attend a Telangana Telugu Association event. However, some media outlets claim the ACB, armed with substantial evidence, is preparing to issue notices and possibly arrest KTR.
