K.T. Rama Rao Might Face Further ACB Summons Over Formula-E Investigation
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Synopsis
K.T. Rama Rao is likely to be summoned again by the ACB following the Supreme Court's dismissal of his FIR quash petition in the Formula-E case. The investigation focuses on alleged financial irregularities involving government funds.
Key Takeaways
- K.T. Rama Rao faces potential questioning by the ACB.
- The Supreme Court rejected his plea to quash the FIR.
- Investigation includes questioning of key officials.
- FIR filed under the Prevention of Corruption Act.
- The Enforcement Directorate is also involved in the probe.
Hyderabad, Jan 15 (NationPress) Following the Supreme Court's decision on Wednesday to reject the FIR quash petition from Bharat Rashtra Samithi (BRS) working president K.T. Rama Rao in the Formula-E race case, the Telangana Anti-Corruption Bureau (ACB) is expected to summon him again for further questioning regarding alleged irregularities.
The ACB may also send new notices to Special Chief Secretary Arvind Kumar and former chief engineer of the Hyderabad Metropolitan Development Authority (HMDA) BLN Reddy, both of whom have already been interrogated in this matter.
The former minister approached the Supreme Court after the Telangana High Court on January 7 denied his plea to quash the FIR lodged by the ACB concerning alleged funds misappropriation during the Formula E Race.
The Supreme Court declined to intervene or stay the High Court’s ruling.
The Division Bench, which included Justices Bela M. Trivedi and PB Varale, stated that a thorough investigation could be carried out.
K.T. Rama Rao’s attorney Siddartha Dave sought permission to withdraw the case while retaining the right to appear before the High Court.
Senior advocate Mukul Rohatgi, representing the state government, opposed this request.
The apex court permitted K.T. Rama Rao’s lawyer to withdraw the case but did not grant the option to return to the High Court.
During the hearings, Siddhartha Dave contended that the case was politically charged.
He claimed that the FIR was filed against K.T. Rama Rao due to his status in the Opposition.
The BRS leader had appeared before the ACB on January 9, where he was interrogated for more than six hours regarding his actions as the former minister for Municipal Administration and Urban Development (MA&UD) in signing the agreement to host the Formula-E race in 2023 while the BRS was in power.
The ACB registered an FIR last month against K.T. Rama Rao, Arvind Kumar, and BLN Reddy for their alleged misconduct regarding payments made by the HMDA to Formula E Operations (FEO) and associated entities, bypassing established financial protocols.
The FIR was filed under Sections 13 (1) (A) and 13 (2) of the Prevention of Corruption Act, as well as Sections 409 and 120 (B) of the Indian Penal Code.
On October 25, 2022, the MA&UD department entered into a tripartite agreement with FEO Limited and Ace Nxt Gen Private Limited (sponsor) to conduct Formula E races for the 9th to 12th seasons in Hyderabad.
The ‘Season 9’ race took place on February 11, 2023, during the tenure of the BRS government. However, the sponsor later withdrew, citing financial losses. The HMDA, under K.T. Rama Rao's ministry, transferred approximately Rs 55 crore to FEO.
This amount, in British Pounds, was allegedly transferred without the necessary approval from the Reserve Bank of India (RBI).
The Congress government, which assumed power in December 2023, canceled the E-race and initiated an investigation into the transfer of government funds without proper procedures, along with the corruption allegations.
The Enforcement Directorate (ED) is also probing the matter under the Prevention of Money Laundering Act (PMLA), based on the FIR filed by the ACB.
The central agency is investigating possible infractions of the Foreign Exchange Management Act. The ED has summoned K.T. Rama Rao to appear before it on January 16, having already questioned the other two individuals implicated in the case.
