SC refuses to quash Formula-E case against BRS leader K.T. Rama Rao

New Delhi, Jan 15 The Supreme Court on Wednesday refused to entertain a plea filed by Bharat Rashtra Samithi (BRS) Working President and former Telangana Minister K.T. Rama (KTR) Rao seeking quashing of the Formula-E race case.

After a bench of Justices Bela M. Trivedi and PB Varale expressed their disinclination to interfere, Rama Rao’s counsel sought liberty to withdraw the plea filed before the apex court.

Ultimately, the matter was dismissed as withdrawn.

On January 7, the Telangana High Court had refused to quash the FIR filed by the ACB over alleged misappropriation of funds in the conduct of the Formula-E Race.

With the dismissal of the former minister’s plea by the apex court, the Telangana Anti-Corruption Bureau (ACB) is likely to summon KTR, as the BRS leader is popularly known, for questioning once again for alleged irregularities.

The ACB may also issue fresh notices to Special Chief Secretary Arvind Kumar and the Hyderabad Metropolitan Development Authority's (HMDA) former Chief Engineer B.L.N. Reddy, who were already quizzed once in the case.

The BRS leader had appeared before the ACB on January 9 and was questioned for over six hours focussing on his role as then Municipal Administration and Urban Development (MA&UD) Minister in signing the agreement to conduct the Formula-E race in 2023 when the BRS was in power.

The ACB last month registered an FIR against KTR, Arvind Kumar, and 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.

It was on October 25, 2022, that the MA&UD Department had entered into a tripartite agreement with FEO Ltd and Ace Nxt Gen Private Ltd (sponsor) for conducting Formula-E races for 9, 10, 11 and 12 seasons in Hyderabad.

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.

HMDA which was under Rama Rao’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 cancelled the E-race and also sought an enquiry into the transfer of government funds without following the norms and also 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 federal anti-money laundering 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 ED has already questioned the other two accused in the case.

--IANS

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