Formula E race case: SC refuses to examine KTR’s plea against FIR

On January 7, the high court refused to quash the FIR against him in the case, removing the protection from arrest given to him.

On December 31, 2024, the high court reserved its orders on the plea filed by Rao after hearing the arguments of the state government and his counsel in the case registered by the state anti-corruption bureau (ACB).

The ACB alleged authorized payments to the tune of Rs 55 crore, mostly in forex, were made to Formula E Organization without necessary approvals.

The high court in its order said the allegations indicated Rao without any approval from the state cabinet or the finance department directed the Hyderabad Metropolitan Development Authority (HMDA) to pay huge sums of money to a foreign company.

“Whether the petitioner directed the said payments with a dishonest intention to cause gain to himself or third parties is required to be investigated. The allegations when read together make out a prima facie case of wrongdoing and misappropriation of funds of the HMDA,” said the high court order.

The investigating agency should have a reasonable opportunity to investigate and collect evidence, and the court cannot “haste and thwart” the probe, it added.

The ACB on December 19 last year registered a case against Rao under relevant sections of the Prevention of Corruption Act and IPC dealing with criminal misappropriation, criminal misconduct, criminal breach of trust and criminal conspiracy for allegedly causing an approximate loss of Rs 55 crore to the exchequer.

Though the race was supposed to be held in February 2024 as well, it was canceled after the Congress government came to power in the state in December, 2023.

Rao, who was the municipal administration minister during the previous BRS regime, was summoned by the ED for questioning on January 7 over the alleged irregularities in organizing the race in Hyderabad but he sought time.

Rao, now an MLA, was named the prime accused in the FIR whereas senior IAS officer Arvind Kumar and retired bureaucrat BLN Reddy were named the other accused.