Hyderabad: In a relief to BRS working president KT Rama Rao (KTR), the Telangana High Court on Tuesday, December 31 extended the stay on his arrest in connection with the Formula E race case. During the hearing, the court directed the ACB not to arrest KTR until a verdict is pronounced on his plea.
The court has permitted the investigation to proceed. Meanwhile, the Enforcement Directorate (ED) has summoned KTR to appear for questioning on January 7 in connection with an alleged money laundering case related to financial irregularities in the Formula-E race.
On December 21, KTR filed the quash petition after the ACB had filed a case against him charging him with criminal breach of trust and misappropriation of funds amounting to Rs 55 crore.
Submitting the counter-petition before the court, the ACB had sought cancellation of the interim bail of KTR, arguing that granting him bail at this juncture would hamper the investigation. The ACB has sought KTR’s custody to question him regarding the allegations.
The ACB has already recorded the statement of Principal Secretary (MA&UD) Dana Kishore, the complainant in the case.
On December 19, the ACB registered a case against KTR for alleged misuse of government funds in conducting the Formula E race in Hyderabad last year when the BRS was in power.
The First Information Report (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 (IPC).
Ongoing debacle of the Formula E race ‘scam’ in Hyderabad
After the Congress party assumed power in Telangana, it was revealed that the previous BRS government spent Rs 54 crores including Rs 8 crores in taxes on Formula E, the organizers of Formula E Season 10 in Hyderabad without Cabinet approval. A memo was issued to IAS officer Arvind Kumar, questioning the authorization for this transaction.
Congress also alleged that Rs 55 crores were spent on the event and raised concerns over inaction against Ace Nxt Gen, a Greenko subsidiary, for defaulting and withdrawing from the event. This led to the cancellation of the 2024 Formula E race in Hyderabad initially scheduled for February with organizers citing a “breach of contract.”
With the failure to retain the Formula-E race, KTR slammed the Congress government calling the decision “poor and regressive”.
KTR says corruption charges ‘baseless’
Denying there was any corruption in the organisation of Formula E race in Hyderabad last year KTR called the Congress-led state government’s ACB case against him baseless and “politically motivated”. KTR said that he had done no wrong when the BRS was in power last year, and said he will prove his innocence.
The ex-IT minister said that Hyderabad had gained global recognition through the Formula E event. “However, the Congress government’s inept handling of the situation caused reputational damage to Hyderabad and Telangana on the international stage,” said a statement from KTR’s office.
He also challenged the state government to present evidence of corruption in the ongoing Assembly session. “The Congress must focus on fulfilling its promises to the people instead of targeting the opposition with unfounded accusations. The people of Telangana deserve better governance,” said KTR.
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