KTR Faces Setback as Telangana High Court Rejects Quash Petition in Formula-E Investigation

Hyderabad, Jan 7 (NationPress) In a notable setback for Bharat Rashtra Samithi (BRS) working president and former minister K. T. Rama Rao, the Telangana High Court dismissed his quash petition concerning the Formula-E race case on Tuesday.

The High Court, which had reserved judgment on the quash petition on December 31, delivered its ruling on Tuesday, allowing the Anti-Corruption Bureau to proceed with the investigation into this high-profile matter.

KTR, as he is commonly referred to, sought to have the First Information Report (FIR) filed by the Anti-Corruption Bureau (ACB) quashed.

During the hearing, the High Court had prohibited the ACB from arresting KTR. The ACB had summoned him for questioning on January 6, but he left without meeting the investigating officer after his lawyer was denied access.

KTR submitted a written request to the ACB, asking for the questioning to be postponed until the High Court issued its ruling.

The ACB subsequently issued a new notice requiring KTR to appear on January 9.

On December 29, the ACB filed a case against KTR, Special Chief Secretary Arvind Kumar, and B.L.N. Reddy, former chief engineer of the Hyderabad Metropolitan Development Authority (HMDA), for alleged irregularities in organizing the Formula E-car race during BRS's tenure in power.

During the hearing of the quash petition, Advocate General A. Sudershan Reddy informed the court that Rs 46 crore in British Pounds had been improperly paid to Formula-E Operations Limited (FEO).

The government counsel argued that the HMDA was required to obtain permission from the Finance Department for any payment exceeding Rs 10 crore, but in this instance, it processed a total payment of Rs 54 crore without the necessary approval.

The court was informed that the Secretariat Business Rules were violated and that KTR had signed the relevant documentation. KTR's lawyer, Siddhartha Dave, contended that the sections cited by the ACB in the FIR were invalid.

He argued that it was improper to name KTR as an accused, noting that the Secretary of Municipal Administration had signed the agreement for the Formula-E race.

KTR’s counsel maintained that no evidence of corruption had been provided by the ACB, asserting that KTR was not a beneficiary.

The ACB registered the FIR 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. The FIR, filed based on a complaint by Municipal Administration and Urban Development (MA&UD) Principal Secretary Dana Kishore, alleges irregularities involving payments exceeding Rs 54.88 crore made by the HMDA to FEO and related entities without following required financial protocols.

According to the FIR, the payments to FEO occurred between September and October 2023, even after FEO had terminated its agreement with the Telangana government in that timeframe.

This sum also led to a tax liability of Rs 8.06 crore, which was absorbed by HMDA.

A tripartite agreement signed in October 2022 among the Telangana government, FEO, and event sponsor Ace Nxt Gen Pvt Ltd had restricted the financial obligations of the State government.

The FIR claimed that disputes between FEO and Ace Nxt Gen Pvt Ltd resulted in the government taking on financial liabilities without the necessary regulatory approvals, causing losses to the exchequer.