HYDERABAD: Justice K. Lakshman of the Telangana High Court has extended the interim relief granted to Kalvakuntla Taraka Rama Rao (KTR), MLA and Working President of the Bharat Rashtra Samithi (BRS) until pronouncement of orders in connection with a corruption case related to the Hyderabad Formula E Races. The court has reserved its orders on a criminal petition filed by KTR seeking to quash the proceedings.
Previously, the court had directed authorities not to arrest KTR until December 31, 2024, while allowing the Anti-Corruption Bureau (ACB) to proceed with its investigation. The ACB had registered the case as Crime No. 12/RCO-CIU ACB-2024 under the Prevention of Corruption Act, 1988, and the Indian Penal Code, naming KTR as Accused No. 1.
The case involves allegations of procedural violations and financial irregularities in the conduct of the Formula E Races. According to a complaint filed by M. Dana Kishore, Principal Secretary of the Municipal Administration and Urban Development (MA&UD) Department, the Hyderabad Metropolitan Development Authority (HMDA) transferred ₹54.88 crore to Formula E Operations Ltd. and other entities without obtaining necessary administrative approvals.
The complaint also highlights foreign remittances made without regulatory clearance, resulting in an additional tax burden of ₹8.06 crore. It alleges that payments were processed even after Formula E Operations Ltd. unilaterally terminated the tripartite agreement on October 27, 2023. A new agreement was executed during the Model Code of Conduct period without the Election Commission’s prior approval, and amounts were transferred before this second agreement was formalized.
Senior Counsel Siddarth Dave, appearing for KTR, argued that the case was politically motivated and devoid of merit, citing the absence of evidence showing personal financial gain or conspiracy on KTR's part. He contended that the FIR was registered hastily without conducting a preliminary inquiry, referencing Supreme Court precedents to advocate for its quashing.
On the other hand, Advocate General A. Sudarshan Reddy, representing the state, maintained that the payments deviated from established government business rules and lacked requisite permissions. He noted that the Governor had sanctioned proceedings against KTR on December 17, 2024, underscoring the need for a detailed investigation to uncover the truth. Senior Counsel C.V. Mohan Reddy argued on behalf of M. Dana Kishore, Principal Secretary, Municipal Administration and Urban Development (MA&UD) Department.
After hearing arguments from both sides, Justice Lakshman extended the interim relief to KTR and reserved orders on the petition to quash the FIR.
