SC dismisses K T Rama Rao's plea against High Court's refusal to quash FIR in Formula E-race case

The action was initiated to damage his political reputation and to deter him from exposing the failure of the government in implementing the promises made to the public before elections, KTR's plea claimed.

New Delhi: In a setback to BRS working president K T Rama Rao, the Supreme Court on Wednesday declined to interfere with the Telangana High Court's January 7 order refusing to quash an FIR lodged for alleged corruption in payments of about Rs 55 crore, some of it in foreign currency without approvals, to conduct a Formula-E race in Hyderabad during the previous regime in February, 2023.

A bench of Justices Bela M Trivedi and Prasanna B Varale felt a thorough investigation can be conducted in the matter, while refusing to consider his plea.

Senior advocate Sidharth Dave sought permission to withdraw the plea. Senior advocate Mukul Rohatgi for the Telangana government opposed the plea.

The court, however, allowed Rao to withdraw the plea, by treating the petition dismissed as withdrawn.

The FIR was lodged on December 19, 2024 at Police Station ACB, CIU under Sections 13 (1) (a) r/w 13 (2) of the Prevention of Corruption Act, 1988 and Sections 409 and 120-B of Indian Penal Code.

In a special leave petition, Rao, the opposition leader, said the case was lodged with mala fides and was initiated maliciously with an ulterior motive for wrecking vengeance on him as he was former Minister and present Member of Legislative Assembly and working President of the principal opposition party i.e., BRS party.

The action was initiated to damage his political reputation and to deter him from exposing the failure of the government in implementing the promises made to the public before elections, his plea claimed.

His plea claimed Formula E operations was proposed to be conducted for the first time in India at Hyderabad by the initiative of the then government and the first season, i.e Season 9, was a huge economic success, as per the analysis of Nielson Sport Analysis.

It stated that the event generated a massive revenue of $83 million (Rs 717 crore) for the state and the successive government has breached the agreement without paying the balance 50 per cent of the payment, forfeiting the initial 50 per cent payment paid by the Hyderabad Metropolitan Development Authority and also by causing substantial loss to the state’s revenues.

Apart from defaming Hyderabad/Telangana in the global market and after causing irreparable loss, the state government has erroneously registered the FIR to wreck vengeance against the petitioner to please their political boss, the plea claimed.

In his plea, the petitioner sought a stay on the High Court's order and on the investigation. He also sought a direction to the investigating agency to not take any coercive action against him, besides interim bail.

The High Court has rejected the plea of the petitioner to quash the FIR, saying the allegations indicate that the petitioner, without any approval from the state Cabinet or the finance department, directed the HMDA to pay huge sums of money to a foreign company.

"Whether the petitioner directed the said payments with a dishonest intention to cause gain to himself or third parties is required to be investigated. The allegations when read together make out a prima facie case of wrong doing and misappropriation of funds of the HMDA. The same are enough to warrant an investigation," the HC had said.

The High Court also said the complaint was lodged on December 18, 2024 and the FIR was registered on December 19, 2024. Immediately and on the very next day i.e., on December 20, 2024, the petitioner herein filed the present criminal petition.

"The investigating agency should have a reasonable opportunity to investigate and collect evidence. Therefore, this court cannot haste and thwart the investigation in the present case," it has said.