Setback to KTR as Telangana HC dismisses quash petition in Formula-E case

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

The High Court, which had reserved its orders on the quash petition on December 31, pronounced the same on Tuesday, paving the way for an investigation into the high-profile case by the Anti-Corruption Bureau.

KTR, as the BRS leader is popularly known, had sought orders to quash the First Information Report (FIR) registered by the Anti-Corruption Bureau (ACB).

During the hearing of the quash petition, the High Court had barred the ACB from arresting KTR. The ACB had summoned KTR for questioning on Monday (January 6). The former minister visited the ACB office but returned without appearing before the investigating officer after his lawyer was not allowed to be present during questioning.

He submitted a letter to the ACB, requesting it to defer the questioning till the High Court pronounces its order.

The ACB has issued a fresh notice, directing KTR to appear on January 9.

The ACB on December 29 had booked a case against KTR, Special Chief Secretary Arvind Kumar and Hyderabad Metropolitan Development Authority (HMDA) former chief engineer B.L.N. Reddy for alleged irregularities in organizing the Formula E-car race in 2023 when BRS was in power.

During the arguments on the quash petition, Advocate General A. Sudershan Reddy had told the court that Rs 46 crore in British Pounds were paid to Formula-E Operations Limited (FEO) in violation of rules.

The government counsel submitted to the court that HMDA required permission from the Finance Department for payment of more than Rs 10 crore but in this case, it made a total payment of Rs 54 crore without any approval.

The court was told that Secretariat Business Rules were not followed and that the then minister KTR signed the note file. KTR’s counsel Siddhartha Dave argued that the sections invoked by the ACB in the FIR are not valid.

He submitted to the bench that it was not proper to name KTR as an accused in the case. He also mentioned that the Secretary, Municipal Administration signed the agreement for the Formula-E race.

The BRS leader’s counsel contended that the ACB has not provided any evidence of corruption. He told the court that KTR was not the beneficiary.

The ACB had registered the FIR under Sections 13(1)(A) and 13(2) of the Prevention of Corruption Act, along with Sections 409 and 120(B) of the Indian Penal Code. The FIR, registered on a complaint by Municipal Administration and Urban Development (MA&UD) Principal Secretary Dana Kishore alleges irregularities in payments exceeding Rs 54.88 crore made by the HMDA to Formula-E Operations Limited (FEO) and associated entities without adhering to established financial procedures.

According to the FIR, the payments were made to FEO between September and October 2023, despite FEO terminating its agreement with the Telangana government during the same period.

This amount also incurred a tax liability of Rs 8.06 crore, which was borne by HMDA.

A tripartite agreement signed in October 2022 between the Telangana government, FEO, and event sponsor Ace Nxt Gen Pvt Ltd had limited the State government’s financial responsibility.

The FIR alleged that disputes between FEO and Ace Nxt Gen Pvt Ltd led to the government assuming financial liability without regulatory approvals, causing losses to the exchequer.

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