Supreme Court Dismisses K.T. Rama Rao's Plea in Formula-E Case
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Synopsis
The Supreme Court has refused to quash the Formula-E race case against K.T. Rama Rao, following a previous dismissal by the Telangana High Court. The ACB is expected to summon him again for questioning regarding alleged financial irregularities.
Key Takeaways
- The Supreme Court declined K.T. Rama Rao's plea.
- The Telangana High Court also refused to quash the FIR.
- The ACB is expected to summon KTR for further questioning.
- Fresh notices may be issued to other officials involved.
- The ED is investigating under the PMLA.
New Delhi, Jan 15 (NationPress) The Supreme Court on Wednesday declined to consider a petition submitted by Bharat Rashtra Samithi (BRS) Working President and former Telangana Minister K.T. Rama Rao (KTR) that sought to dismiss the Formula-E race case.
After a bench comprising Justices Bela M. Trivedi and PB Varale showed their reluctance to interfere, Rao's legal representative requested permission to withdraw the petition submitted to the apex court.
Consequently, the issue was dismissed as withdrawn.
On January 7, the Telangana High Court had also refused to quash the FIR lodged by the ACB regarding alleged misappropriation of funds related to the Formula-E Race.
With the apex court's dismissal of the former minister’s plea, the Telangana Anti-Corruption Bureau (ACB) is expected to call KTR, as he is widely known, for further questioning regarding the alleged irregularities.
The ACB may also issue new notices to Special Chief Secretary Arvind Kumar and Hyderabad Metropolitan Development Authority (HMDA) former Chief Engineer B.L.N. Reddy, who had previously been interrogated in the case.
KTR had appeared before the ACB on January 9 and was interrogated for over six hours concerning his role as then Municipal Administration and Urban Development (MA&UD) Minister in signing the agreement to host the Formula-E race in 2023 during the BRS administration.
Last month, the ACB filed an FIR against KTR, Arvind Kumar, and Reddy for alleged irregularities in payments made by the HMDA to Formula-E Operations (FEO) and related entities, without following the prescribed financial protocols.
The FIR was lodged 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 had executed a tripartite agreement with FEO Ltd and Ace Nxt Gen Private Ltd (sponsor) to conduct Formula-E races for seasons 9, 10, 11, and 12 in Hyderabad.
Season 9 of the race took place on February 11, 2023, when the BRS was still in power. However, the sponsor later withdrew, claiming financial losses.
The HMDA, which was under KTR’s ministry, transferred approximately Rs 55 crore to FEO. This transfer, in British pounds, was allegedly executed without the necessary approval from the Reserve Bank of India (RBI).
The Congress government that assumed office in December 2023 canceled the E-race and initiated an investigation into the transfer of public funds without adhering to regulations, along with the corruption allegations.
The Enforcement Directorate (ED) is also investigating under the Prevention of Money Laundering Act (PMLA) based on the FIR filed by the ACB.
The federal anti-money laundering agency is examining potential breaches of the Foreign Exchange Management Act. The ED has summoned KTR to appear on January 16 and has already interrogated the other two accused in the case.
