Hyderabad: In a setback to former MA&UD minister and BRS working president KT Rama Rao (KTR) in the Formula E case, the Supreme Court has dismissed his quash petition after letting his counsel withdraw the petition on Wednesday, January 15.
With the Supreme Court dismissing the FIR quash petition, the Telangana Anti-Corruption Bureau (ACB) is likely to summon him for questioning once again for alleged irregularities in transferring funds amounting to around Rs 55 crore to a foreign company during the Formula E race held in Hyderabad in 2023.
The ACB may also issue fresh notices to former special chief secretary Arvind Kumar and former chief engineer of the Hyderabad Metropolitan Development Authority (HMDA) BLN Reddy, who were already quizzed once in the case.
The former minister had approached the Supreme Court after the Telangana High Court on January 7 refused to quash the FIR filed by the ACB over alleged misappropriation of funds in the conduct of the Formula E Race.
The Supreme Court refused to intervene and stay the order given by the High Court.
The Division Bench, comprising Justices Bela M Trivedi and PB Varale opined that a comprehensive investigation can be conducted into the case.
KTR’s counsel Siddartha Dave appealed to allow him to withdraw the case with liberty to appear before the High Court.
Senior advocate Mukul Rohatgi, who appeared on behalf of the state government, opposed the appeal.
The apex court allowed KTR’s counsel to withdraw the case but refused to give the liberty to go back to the High Court.
During the arguments, Siddhartha Dave submitted that the case was politically motivated. He argued that the case was registered against KTR, as he was in the Opposition.
Formula E ‘scam’ case: SC set to hear KTR’s quash petition today
The BRS leader had appeared before the ACB on January 9 and was questioned for over six hours focussing on his role as then minister of Municipal Administration and Urban Development (MA&UD) in signing the agreement to conduct the Formula-E race in 2023 when the BRS was in power.
Last month the ACB registered an FIR against KTR, Arvind Kumar, and BLN Reddy for alleged irregularities in payment by the HMDA to Formula E Operations (FEO) and associated entities without adhering to established financial procedures.
The FIR was registered 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.
On October 25, 2022, the MA&UD department entered into a tripartite agreement with FEO Limited and Ace Nxt Gen Private Limited (sponsor) for conducting Formula E races for 9, 10, 11, and 12 seasons in Hyderabad.
The ‘Season 9’ of the race was held on February 11, 2023, when the BRS government was in power. However, later the sponsor backed out citing financial losses. The HMDA which was under KTR’s ministry transferred about Rs 55 crore to FEO.
The money in British Pounds was transferred allegedly without mandatory approval from the Reserve Bank of India (RBI).
The Congress government that took over in December 2023 canceled the Formula E race and also sought an inquiry into the transfer of government funds without following the norms and the allegations of corruption.
The Enforcement Directorate (ED) is also conducting a probe under the Prevention of Money Laundering Act (PMLA) based on the FIR filed by the ACB.
The Central agency is looking into possible violations of the Foreign Exchange Management Act. The ED has summoned KTR to appear before it on January 16. The Central agency has already questioned the other two accused in the case.
