HC extends KTR’s order of protection from arrest till Tuesday in ACB case

Telangana High Court extends protection for KTR facing corruption case over Formula-E race financial irregularities.

The Telangana High Court on Friday extended till Tuesday the order of protection from arrest to BRS working president and former Minister K.T. Rama Rao who is facing a corruption case registered by the Anti-Corruption Bureau over alleged financial irregularities relating to Formula-E race held in Hyderabad during BRS rule.

Justice K. Laxman of the HC, before whom the ACB filed a counter affidavit in a criminal petition filed by KTR, posted the matter to Tuesday for next hearing. ACB DSP Majid Ali Khan, who filed the counter affidavit, stated that no mandatory formal approvals were secured from the regulatory authorities by Hyderabad Metropolitan Development Authority to make foreign remittances to M/s F.E.O. of United Kingdom through Indian Overseas Bank towards sponsor fee.

This resulted in an additional tax burden on HMDA to the tune of ₹8.06 crore. An amount of ₹1.10 crore was also paid to Federation of Motor Sports Club of India towards FIA inscription interstate championship calendar fee and permit fee. KTR was Minister for Municipal Administration and Urban Development then. HMDA was part of his portfolio.

A total of ₹54.88 crore were paid by HMDA to conduct Formula-E race in Hyderabad. The entire amount was paid from general funds of HMDA. No mandatory administrative sanction was obtained from the government to release such huge sums of money, Mr. Khan, investigating officer of the case, said in the counter affidavit.

“These sums were paid despite there being no obligation by the subsisting agreement. The new agreement entered into by the then government on October 30 of 2023 imposed a financial commitment of nearly ₹600 crore with additional recurring expenditure for next three years,” the IO said. “There was no administrative sanction for this. There was no approval from the Finance department either,” he added.

As per Secretariat Business Rules, all matters affecting State finances should be circulated to the Finance department. Cases involving recurring expenditure of certain ceiling limits should be placed before the Council of Ministers. In his reply to the counter affidavit, KTR stated that the nature of approvals from regulatory authorities to be obtained for release of funds was not mentioned by the ACB.

The name of the person from whom to secure approvals was also not mentioned. “The bank is the authorised dealer and in case of any prior permission is required, it is for the relevant authorities to look into the same,” KTR said in his reply. “The petitioner is not expected to deal with the procedural requirements. It is the responsibility of the persons concerned in the department,” he stated.