Formula E race case: Telangana High Court refuses to quash FIR against BRS leader K T Rama Rao

The case was registered under relevant sections of the Prevention of Corruption Act and IPC dealing with criminal misappropriation, criminal misconduct, criminal breach of trust and criminal conspiracy that allegedly resulted in loss to the government exchequer to the tune of about Rs 55 crore.

In a setback to BRS working president K T Rama Rao, the Telangana High Court on Tuesday dismissed his plea to quash the Formula E FIR registered against him by ACB.

Justice K Lakshman of the Telangana High Court dismissed the petition filed by KTR in which he sought to quash the FIR related to the Formula E racing event, thus clearing the way for his arrest. A few days ago, the High Court issued an interim relief to KTR, giving protection to him from arrest until December 31. KTR is now expected to approach the Supreme Court.

KTR who was the Minister for Municipal Administration and Urban Development (MA&UD) at the time of the race, had sought to quash the FIR, arguing the allegations against him were politically motivated.

Immediately after the High Court's verdict, ACB has intensified its probe. ACB sleuths conducted searches in the offices of Greenko Company which was said to be linked to FEO, to which the then Telangana government had transferred Rs 55crore to conduct the Formula E Race.

Appearing on behalf of KTR, senior advocate Siddharth Dave on December 31, had argued that there was no evidence of corruption or misappropriation of funds in conducting the race. He also asserted that KTR did not receive any personal benefit or used those funds.

The government's advocate general, A Sudarshan Reddy, argued that payments were made to the organisers even before the race was held. Since the arguments from both sides have concluded, the high court bench has reserved its decision.

Telangana's ACB on December 19 registered an FIR against KTR and two other senior government officials for alleged misuse of government funds and irregularities in organising the Formula E Race during the BRS regime.

The FIR named KTR as the prime accused, the then MA & UD secretary; A. Arvind Kumar, as the second accused; and the former chief engineer of the Hyderabad Metropolitan Development Authority (HMDA), BLN Reddy, as the third accused.

They were booked under Sections 13(1)(A) and 13(2) of the Prevention of Corruption Act, along with Sections 409 and 120(B) of the IPC. It is alleged that Rs 55 crore, including taxes, was paid by HMDA to the foreign company FEO in violation of RBI guidelines. The FIR also mentions a statement by Arvind Kumar, who said that he transferred the funds upon the instructions of the competent authority, the then MA&UD minister, KTR.

While the Enforcement Directorate (ED) had also launched its probe the agency had issued summons to KTR again on January 16 to appear in PMLA case of Formula E irregularities. While he was scheduled to appear before ED on Tuesday he sought time after which fresh summons to appear on January 16 were issued.