HYDERABAD: Justice N.V. Shravan Kumar of the Telangana High Court granted permission to hear a lunch motion petition filed by Kalvakuntla Taraka Rama Rao (KTR), MLA and Working President of the Bharat Rashtra Samithi (BRS).
The petition seeks the quashing of proceedings in Crime No.12/RCO-CIU ACB-2024, registered under the Prevention of Corruption Act, 1988, and relevant sections of the Indian Penal Code. The court scheduled the hearing for after 2:45 PM on Friday.
The petitioner, named as Accused No. 1 in the case, is alleged to have been involved in irregularities concerning the conduct of Formula E Races in Hyderabad.
The prosecution has invoked Section 13(1)(a) read with 13(2) of the Prevention of Corruption Act and Section 409 read with 120B of the IPC.
According to the prosecution, the case stems from a complaint by M. Dana Kishore, Principal Secretary of Municipal Administration and Urban Development (MA&UD), to the Anti-Corruption Bureau (ACB), alleging procedural violations and financial irregularities.
A tripartite agreement was executed on October 25, 2022, between Formula E Operations Ltd. (a UK-based company), the MA&UD Department of Telangana, and ACE Nxt Gen Private Limited for conducting Formula E Races from seasons 9 to 12 in Hyderabad.
The Telangana government’s role was confined to building the race track and providing civic amenities.
The Hyderabad Metropolitan Development Authority (HMDA) reportedly incurred ₹12 crore for the inaugural event held on February 11, 2023.
However, the subsequent agreement saw HMDA assume the role of promoter and host, with estimated expenditures rising to ₹110 crore for the event and ₹50 crore for ancillary works.
The prosecution alleges that:
1. HMDA transferred payments totaling over ₹54.88 crore to Formula E Operations Ltd. and other entities, without necessary administrative approvals.
2. Foreign remittances were made without regulatory clearance, resulting in an additional tax burden of ₹8.06 crore.
3. Payments were processed even after the unilateral termination of the tripartite agreement by Formula E Operations Ltd. on October 27, 2023.
4. A new agreement was executed between Formula E Operations and the MA&UD Department during the Model Code of Conduct period, allegedly without the Election Commission’s prior approval.
The complaint accuses the petitioner and two government officials of conspiring to cause wrongful loss to the state exchequer and gain for third parties.
KTR contends that the allegations are politically motivated and lack merit. The complaint fails to detail any personal pecuniary benefit to the petitioner or substantiate claims of conspiracy with private entities. Moreover, no private party has been named as an accused in the case.
