Hyderabad: Telangana high court has ruled that former minister KT Rama Rao will not be arrested until a decision is made on his petition challenging an ACB probe into the Formula E race case.
The court’s directive comes after hearing arguments from both Anti Corruption Bureau and KTR’s counsel, with Justice K Lakshman reserving his judgment. He directed the ACB not to arrest KTR till the pronouncement of judgment in the case.
Advocate general A Sudarshan Reddy, representing the ACB, argued that KTR had acted irresponsibly by involving the Hyderabad Metropolitan Development Authority (HMDA) to cover up the defaults of the sponsor company, Ace Next Gen. Initially, Formula E Organisation (FEO) had entered an agreement with Ace Next Gen and the municipal administration department for a four-season car racing event in Hyderabad.
However, Ace Next Gen defaulted on payments, prompting KTR to intervene by involving HMDA, despite the state’s limited role. The AG claimed this was a deliberate attempt to shift responsibility to HMDA, resulting in a significant financial loss to the state’s exchequer.
The AG also addressed concerns about foreign remittances, stating that the Enforcement Directorate had already issued notices to KTR and others. These remittances, processed through HMDA, were allegedly made without following proper protocols, including cabinet approval and compliance with the model code of conduct during the 2023 state assembly elections.
Senior counsel CV Mohan Reddy, representing the municipal administration department, argued that KTR had bypassed established procedures and had improperly authorised funds, accusing him of criminal breach of trust. He said the ACB has recorded the statement of the complainant, Dana Kishore, principal secretary of the municipal administration, and is in the process of recording the statements of other witnesses.
Though HMDA was not a party to the past agreement, it was made to cough up 54 crore for the defaults committed by the sponsor, Sudarshan Reddy said.
On the other hand, KTR’s lawyer Siddhartha Dave dismissed the charges as politically motivated. “The charge of criminal breach of trust cannot be slapped on KTR because even ACB could not show that any part of this money has come to KTR’s personal accounts,” he added. The court is yet to deliver its verdict on whether the FIR against KTR will be quashed.