Telangana High Court Dismisses KTR’s Quash Petition in Formula-E Case
Telangana High Court dismisses KTR's quash petition in the Formula-E race case, allowing the Anti-Corruption Bureau to continue its investigation into alleged financial irregularities involving the BRS leader and others.
Hyderabad: In a significant setback to K. T. Rama Rao (KTR), the working president of the Bharat Rashtra Samithi (BRS) and former minister, the Telangana High Court on Tuesday dismissed his petition to quash the charges in the high-profile Formula-E race case.
The court’s decision paves the way for an investigation by the Anti-Corruption Bureau (ACB) into the alleged financial irregularities surrounding the organization of the Formula E car race held in Hyderabad in 2023.
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Telangana High Court’s Ruling on the Quash Petition
The Telangana High Court had reserved its judgment on December 31, 2024, on KTR’s petition to quash the First Information Report (FIR) filed by the ACB. On January 7, the court dismissed the petition, effectively allowing the ACB to proceed with its investigation. KTR had requested the court to dismiss the FIR, which alleges significant financial irregularities during the organization of the Formula-E race in 2023.
During the hearing of the petition, the court had temporarily prohibited the ACB from arresting KTR, who is a prominent leader of the BRS. Despite this, the ACB summoned KTR for questioning on January 6, 2025. KTR visited the ACB office but did not appear for questioning, citing the absence of his lawyer during the proceedings. Instead, he submitted a letter to the ACB, requesting that his questioning be deferred until the court passed its ruling. The ACB has now issued a new notice, directing KTR to appear before them on January 9, 2025.
The Allegations in the Formula-E Case
The FIR was filed by the ACB on December 29, 2024, against KTR, Special Chief Secretary Arvind Kumar, and the former Chief Engineer of the Hyderabad Metropolitan Development Authority (HMDA), B.L.N. Reddy. The case involves alleged irregularities in the payments made by HMDA in connection with the Formula E car race organized in Hyderabad.
The government counsel, represented by Advocate General A. Sudershan Reddy, argued that Rs 46 crore (in British Pounds) were paid to Formula-E Operations Limited (FEO) in violation of the established financial procedures. It was contended that HMDA, which is responsible for managing urban infrastructure, failed to obtain necessary approvals before making these payments.
The court was informed that under government rules, payments exceeding Rs 10 crore require prior approval from the Finance Department. However, the HMDA made total payments exceeding Rs 54 crore to FEO without securing the necessary permissions, violating the established financial protocols.
KTR’s Defense and Legal Arguments
KTR’s legal counsel, Siddhartha Dave, argued that the ACB had failed to present substantial evidence of corruption and that the sections invoked by the ACB in the FIR were not applicable. He emphasized that KTR was not the beneficiary of any alleged corrupt practices and that the Secretary of Municipal Administration, not KTR, had signed the agreement for the Formula E race.
KTR’s defense also pointed out that the charges against him were not valid and that the FIR should not have included him as an accused in the case. Despite these arguments, the court rejected KTR’s petition to quash the FIR, allowing the investigation to proceed.
Also Read | Telangana HC extends protection to KTR in Formula E-race case
The Financial Irregularities and the Formula-E Race
The FIR registered by the ACB centers on alleged financial misconduct in the organization of the Formula E race held in Hyderabad in 2023. The FIR claims that the HMDA made payments exceeding Rs 54.88 crore to Formula-E Operations Limited (FEO) and associated entities without following the required regulatory procedures. This was despite the fact that FEO had terminated its agreement with the Telangana government during the same period.
The dispute between FEO and Ace Nxt Gen Pvt Ltd, the event sponsor, allegedly forced the Telangana government to assume financial responsibility without obtaining the necessary approvals. As a result, the FIR claims that the government incurred unnecessary losses, including an Rs 8.06 crore tax liability borne by HMDA.
The case also highlights a tripartite agreement signed in October 2022 between the Telangana government, FEO, and Ace Nxt Gen Pvt Ltd. This agreement had limited the state government’s financial responsibility, but the allegations suggest that government officials did not adhere to these terms, leading to financial discrepancies and mismanagement.
Implications for KTR and the BRS
The dismissal of KTR’s quash petition and the continuation of the investigation into the Formula-E race case mark a significant development for the Bharat Rashtra Samithi (BRS), the ruling political party in Telangana. KTR, who is a prominent figure in the party and a key political player in the state, is now facing legal challenges that could impact his political career.
The case has sparked political debates, with opposition parties raising concerns about the alleged corruption and mismanagement under the BRS government. The Anti-Corruption Bureau is now tasked with investigating the allegations and gathering evidence to support the charges against KTR and other accused officials.
