Formula E race case: HC extends interim relief not to arrest KTR until verdict

Hyderabad: The Telangana High Court’s single bench of Justice Kunuru Lakshman on Tuesday extended the interim relief to BRS working president and former minister KT Rama Rao not to arrest him until the final verdict is pronounced. The interim relief granted not to arrest him was until December 31. After hearing arguments of the government and the petitioner's counsel, the judge reserved orders.

Advocate-General A Sudarshan Reddy pointed out that payments were made to the Formula E organisation without following business rules and necessary approvals, while KTR’s counsel argued that there was no criminality in the case.

The ACB on December 19 registered a case against MLA KTR over alleged payments, part of it in foreign currency, without approvals, made to conduct the race in Hyderabad during the previous regime. The case was registered under relevant sections of the PMLA and dealt with criminal misappropriation, misconduct, breach of trust, and conspiracy that allegedly resulted in loss to the government exchequer for about Rs 55 crore. The ACB in its FIR named KTR as the prime accused, senior IAS officer Arvind Kumar and retired bureaucrat BLN Reddy as accused, respectively.

Senior advocate CP Mohan Reddy, appearing for the then-principal secretary, Municipal Administration Dana Kishore, said KTR had approved the transfer of HMDA funds to FEO and that officials obliged him as they worked under the direct supervision of minister KTR.

The A-G informed the court that KTR had ordered payment of the money to FEO even before the agreement was signed last year for the conduct of the 10th edition of the race in February 2024. All rules were flouted while transferring money to the FEO. Reddy apprised the court that though the case was in preliminary stages, all details would come out soon. The investigation agency had the freedom to list more people as accused if it unearthed evidence against them or drop existing accused if there was not enough evidence, he asserted.

The A-G told the court that the statement of Dana Kishore had been recorded and that none listed as accused in the case had been arrested. The Enforcement Directorate has also issued a notice to KTR to appear before it on January 7. There was no explanation in the agreement of how the State would benefit by organising the race, Reddy said.