Telangana HC Extends KTR’s Interim Arrest Relief to Dec 31

Hyderabad: The Telangana High Court on Friday extended the interim relief against the arrest of BRS working president K.T. Rama Rao in the FIR registered by the ACB over the alleged Formula E race irregularities, till December 31.

The ACB filed a counter affidavit in the quash petition filed by Rao, and an interim application before the High Court to vacate the interim orders against his arrest. The agency explained its contention to register the case and requested the court to allow them to arrest him.

Justice K. Lakshman on Friday heard the matter and adjourned the case for further hearing to December 31.

The court directed Rao to file his reply on the ACB’s interim application. It also directed Dana Kishore, principal secretary (municipal administration), to file his reply on Rao’s quash petition. It was based on Kishore’s complaint that the ACB had filed the FIR against Rao, senior IAS officer Arvind Kumar and other officials.

In its vacate stay petition and counter affidavit, the ACB refuted Rao’s contention that he had no role in the tripartite agreement made in 2022 between the municipal administration department, Formula E Operations Ltd (FEO) and the sponsor Ace Nxt Gen Pvt Ltd.

The ACB stated that after the sponsor had quit the agreement in 2023, Rao, the then minister for municipal administration, approved HMDA stepping in as a replacement. Based on the minister's recommendations, HMDA released `58 crore in favour of FEO.

The ACB pointed out that Rao had stated on electronic media that he had directed the amount to be paid to the FEO. The transfer of money was in violation of business rules and without finance code and without permission from the finance department, the ACB stated.

It said that Rao was now claiming that during the second agreement, dated on October 30, 2023, between the HMDA, the state government and FEO, he had no role. At that time the model code of conduct (MCC) for the Assembly polls was in vogue.

The ACB also stated that the second agreement violated Article 299 of the Constitution, which states that government contracts shall be executed on behalf of the President or the Governor by such persons and in such manner as he may direct or authorise. The contract agreement in the Formula E race issue was contrary to this, and a huge exchequer amount was paid to FEO, a foreign registered company.

The ACB submitted to the court that it had received the complaint on the matter on October 18, 2024. After a preliminary inquiry, it registered the FIR against Rao.

In reply to the ACB’s counter affidavit, Rao stated that HMDA was a corporate body having an independent legal entity. Rao submitted that it was for the relevant authorities to examine compliance with the required approvals, and the minister was not expected to deal with procedural requirements.

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ACB refutes K.T. Rama Rao’s contention that he had no role in the 2022 tripartite agreement between the municipal administration department, Formula E Operations Ltd (FEO) and sponsor Ace Nxt Gen Pvt Ltd.

ACB says that after the sponsor quit in 2023, it was Rao, who had approved HMDA as a replacement.

Based on the minister's recommendations, HMDA released `58 crore in favour of FEO.

The transfer of money happened in violation of business rules, without permission from the finance department, said the agency.

It said that Rao was now claiming that during the second agreement, dated October 30, 2023, between HMDA, the state government and FEO, he had no role.

ACB says that the second agreement violated Article 299 of the Constitution, which states that government contracts shall be executed on behalf of the President or the Governor.

Rao maintains that HMDA is a corporate body having an independent legal entity.

On ACB charge that HMDA did not obtain approval from regulatory authorities for foreign remittances, Rao says it is for the authorities to examine the matter and not the minister.