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Telangana HC grants relief to KTR in Formula E case, No arrest till Dec 30, 2024

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Telangana High Court

Hyderabad: In a big relief to KT Rama Rao(KTR), The Telangana High Court Justice NV Shravan Kumar directed the Anti Corruption Bureau(ACB) not to arrest former Municipal Administration and Urban Development(MA&UD) minister KTR till 30 December, 2024 in the Formula E race case. Further directed to file a counter in the case.

Senior counsel C A Sundaram, representing KTR, argued that the case stemmed from political vendetta and questioned the 14-month delay in filing the FIR. He emphasized that the government’s intervention in the Formula E race event was merely to “safeguard the event” after the sponsor backed out.

“Where is the criminal misconduct? This is not a matter where Section 13(1)(a) PC Act will apply,” Sundaram contended. He stressed that while the decision might be questioned, there was “not even a whisper of personal interest” against his client. The senior counsel highlighted that no money was allegedly misappropriated for KTR’s personal use.

Advocate General A Sudarshan Reddy, representing the State, countered that a preliminary inquiry had revealed “serious irregularities” involving approximately Rs 56 crores. He informed the court that the Governor had granted prosecution permission after due consideration.

The Advocate General argued that international transactions exceeding Rs 10 crores require government sanction, which was allegedly bypassed. “No permission was taken from the government because A1 (KTR) approved it,” Reddy stated, adding that the Finance Department’s concurrence wasn’t obtained.

Senior counsel Sundaram argued that police must conduct a preliminary inquiry before registering an FIR. “A criminal case is not a fishing expedition. The purpose of investigation is to garner evidence, not to find the ingredients of an offence,” he maintained.

While Senior counsel Sundaram argued for staying the proceedings citing political vendetta and delayed FIR registration, the prosecution maintained that quashing the FIR at this preliminary stage would be inappropriate. The Advocate General suggested that the accused could alternatively seek anticipatory bail.

After hearing both sides of arguments, The Telangana High Court Justice NV Shravan Kumar Venkat directed the ACB not to arrest former minister KTR till 30 December, 2024 in the Formula E race case. Further directed to file a counter in the case by 27 December, 2024.

On 19, December,2024, the Anti-Corruption Bureau (ACB) registered a First Information Report (FIR) against K.T. Rama Rao (KTR), former Minister and working president of the Bharat Rashtra Samithi (BRS), for alleged financial irregularities during the Formula E race in Hyderabad in February 2023.

KTR is the prime accused in the FIR. The case also implicates former Municipal Administration Department Special Chief Secretary Arvind Kumar and HMDA Chief Engineer B.L.N. Reddy as other accused.

ACB booked a case under section 13 (1) (a) r/w 13 (2) of the Prevention of Corruption Act 1988 (as amended in 2018) and Sec.409 r/w 120-B IPC, and took up the investigation.

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