Telangana High Court grants interim protection from arrest to KT Rama Rao in Formula E Race scam

The Telangana High Court on Friday granted interim protection from arrest to Bharat Rashtra Samithi (BRS) Member of the Legislative Assembly (MLA) Kalvakuntla Taraka Rama Rao (KTR) in the Formula E race funding case..Justice Shravan Kumar ordered that KTR should not be arrested in the case until December 30. It also sought the Telangana government's response to KTR's plea to quash the case against him, before posting the matter for further hearing on December 27. "Prima facie ... no specific allegations were made in the FIR dated 19.12.2024 with respect to pecuniary benefit derived by the petitioner (KTR) and as such lacks the ingredients of Sections 13 (1) (a) read with Section 13 (2) of the Prevention of Corruption Act, 1988 ... and Sections 409 read with 120B and the matter requires detailed examination," the Court further observed in its order. .The case involves allegations of corruption and irregularities in the transfer of funds by the BRS-led State government towards the conduct of a second season of the Formula E race in Hyderabad in 2023.The event was not conducted as it was eventually cancelled soon after the Congress government came to power.On December 18, the Anti-Corruption Bureau received a complaint by the Congress-led government over funding irregularities alleged in the conduct of the event, and a first information report (FIR) was registered against three persons, including KTR, of various offences including under the Prevention of Corruption Act. KTR moved an urgent plea to quash the case, which was heard this evening by the High Court..KTR's counsel, Senior Advocate C Aryama Sundaram, argued today that it was a case of political and personal vendetta and that KTR cannot be prosecuted simply on account of a policy decision taken in 2023. He added that the BRS regime had taken a decision to step in to fund the Formula E event in October 2023 after sponsors pulled out, to prevent loss of revenue to the State and since the event had already been widely advertised."You can say 'it is a stupid government decision'! That 'you should have let that profit of crores go, that it was a bad decision.' Very well, take it to the public, courts. But is it a case of corruption? I have never seen a corruption case only because of such a policy decision!" Sundaram said. He further argued that in such cases where it is likely to involve frivolous allegations and political vendetta, a preliminary inquiry should have been held before registering the FIR. He said that it was unlikely that any such preliminary inquiry was undertaken by the police here, since the FIR was registered hastily after the complaint was filed..The State, represented by Advocate General Sudarshan Reddy, countered that the FIR was registered after the government conducted a preliminary inquiry and that even the Governor had granted sanction to go ahead with the prosecution on December 17.He added that there were grave allegations involved against KTR, including that he sent crores of money to a foreign entity, without consulting the relevant State authorities or departments, and even before a contract was finalised.He urged the Court not to grant any interim relief, adding that further investigations would reveal more details about the amounts of money involved and KTR's role in the alleged conspiracy."More than a prima facie case is here. Remaining part, how much misappropriated, how much benefitted by everybody, how much loss to government, will all be part of investigation. There are irregularities committed. And now investigation is sought to be quashed! The monies was paid before the (second) agreement. It is absolutely improper! Number of accused may increase, amount may be there as part of investigation - all that will be part of the chargesheet," he said. .Sundaram, in his rejoinder, maintained that there was nothing in the FIR to make out a prima facie offence against KTR, adding that the State's investigation is not expected to be a "fishing expedition" to build a case against KTR in such circumstances. He also argued that the preliminary investigation expected to be conducted here is not by the complainant (the government, in this case) but by the Investigating Officer. .The Court eventually found that it needs to examine the agreements regarding the Formula E Race in some detail to decide on the matter and sought the State's response.Meanwhile, in view of Sundaram's contention that there was no prima facie case against KTR, the Court protected the BRS Working President from arrest.The Court, however, did not stay the investigation which can continue..[Read Order].[Read Live Coverage]