Formula E Race case: Telangana HC dismisses KTR’s plea to quash ACB case against him, declines to extend arrest protection order 

Telangana High Court dismisses K.T. Rama Rao's petition seeking to quash case registered against him by ACB , facing criminal charges over Formula E Race funds misappropriation.

Telangana High Court dismissed the criminal petition of K.T. Rama Rao, former Minister of Bharat Rashtra Samithi (BRS), seeking a direction to quash the criminal case registered against him by Anti Corruption Bureau (ACB) over alleged misappropriation of funds relating to Formula E Race held during BRS rule.

Justice K. Lakshman of the High Court, who earlier granted protection of arrest to KTR till announcement of verdict in the petition, on Tuesday (January 7, 2025) declined to extend the order. The judge read out the operative part of the judgement in less than a minute and said no to further extension of protection from arrest to the former Minister.

Telangana ACB’s Central Investigation Unit on December 19, 2024, issued a First Information Report invoking sections 13 (1) (a) read with 13 (2) of Prevention of Corruption Act-1988 against KTR. The ACB sleuths also applied section 409 (punishment for criminal breach of trust) of Indian Penal Code against him in the case.

According to the ACB, on October 25, 2022 the then BRS government (KTR was Minister for Municipal Administration and Urban Development) entered into a tripartite agreement with Formula E Operations (FEO) Limited and Ace Nxt Gen Private Limited (sponsor) for conducting Formula E races for 9, 10, 11 and 12 seasons in Hyderabad. As per the agreement, State government role was confined to build track and provide civic amenities for the event.

Season 9 of the race was held on February 11 of 2023. Due some differences, the sponsor backed out from the event. At this stage, Hyderabad Metropolitan Development Authority (HMDA), coming under MA&UD department,stepped into the shoes of sponsor.

However, HMDA from its general funds transferred amounts to the tune of nearly ₹55 crore abroad to FEO. This was done without securing the mandatory approvals from the Finance department and related permissions from the agencies regulating foreign remittances.

KTR knocked the doors of the HC by filing criminal petition seeking an order to stay all further proceedings and quash the case against him alleging that the penal sections invoked in the case were baseless.