ACB summons KTR to appear on January 6 in Formula E Race investigation
Hyderabad: The Anti-Corruption Bureau (ACB) has summoned K.T. Rama Rao (KTR), former Minister and working president of the Bharat Rashtra Samithi (BRS), to appear before the agency on January 6, 2025, as part of its ongoing investigation into the Formula E race case.
The summons follows allegations of financial mismanagement and irregularities related to the event. KTR has been asked to cooperate with the inquiry and provide necessary clarifications.
On December 31, 2024, the Telangana High Court heard arguments regarding allegations of financial mismanagement in the Formula E race case. Justice K. Lakshman, who presided over the hearing, extended the interim order until the pronouncement of the judgment on Tuesday.
Earlier, on December 21, KTR filed a petition to quash the ACB’s case against him. The agency has accused him of criminal breach of trust and misappropriating Rs 55 crore. In its counter-petition, the Additional Public Prosecutor representing the ACB argued for the cancellation of KTR’s interim bail, citing concerns that his release could impede the investigation. The ACB has also sought his custody to question him further regarding the allegations.
In the case, Senior Counsel T. Bala Mohan Reddy, representing IAS officer M. Dana Kishore, Principal Secretary of Municipal Administration and Urban Development, pointed to procedural violations in the Rs 55 crore payment made by the Hyderabad Metropolitan Development Authority (HMDA) during the previous government’s tenure. Mohan Reddy claimed that the payment was made before a formal agreement was finalized, breaching the standard business rules. He raised questions about the adherence to administrative procedures and statutory compliance under the Hyderabad Metropolitan Development Authority Act.
Mohan Reddy further alleged that KTR, who was the Minister for Municipal Administration overseeing HMDA, approved the disbursement of funds despite the procedural irregularities. The payment was made without the necessary administrative sanctions, which, Mohan Reddy argued, could amount to a violation of Section 405 of the Indian Penal Code, concerning criminal breach of trust.
Additionally, Mohan Reddy suggested that the financial dealings violated state finance rules and called for an investigation into whether the funds were misappropriated or misused. He contended that there was clear entrustment of public funds and a breach of trust by both officials and the concerned minister.
KTR’s defense was presented by Senior Counsel A. Prabhakar Rao, who denied the allegations. Prabhakar Rao argued that procedural violations of business rules do not automatically constitute criminal offenses and maintained that there was no evidence to suggest dishonesty or misappropriation of funds. He also clarified that the payments were made as part of an ongoing contractual obligation under an arbitration decision and that the funds were used for legitimate purposes.
Prabhakar Rao further contended that the complaint did not meet the legal criteria for charges of criminal breach of trust or cheating. The Telangana High Court has reserved its order on the matter and extended the interim order until the judgment is pronounced.
