HC relief for KTR in Formula-E race case; rejects plea for quashing of FIR
Telangana HC refuses to quash FIR against BRS leader KTR over ₹55 crore irregularities in Formula-E race; ACB can investigate but no arrest until Dec 30.
The Telangana high court on Friday refused to quash the first information report (FIR) registered by the anti-corruption bureau (ACB) against Bharat Rashtra Samithi (BRS) working president and MLA KT Rama Rao in the case pertaining to alleged financial irregularities to the tune of ₹55 crore in the conduct of Formula-E car race in Hyderabad, people familiar with the matter said.
Justice Shravan Kumar, who heard the arguments over a quash petition filed by KTR, as the BRS leader is popularly known, directed that the ACB authorities not to arrest him till December 30. It asked the ACB to file a counter to KTR’s petition before December 27, when the next hearing takes place.
Stating that the matter requires examination, the judge said that the ACB could proceed with the investigation.
The ACB filed the FIR against KTR under Section 409 (criminal breach of trust) and 120-B (criminal conspiracy), besides Section 13(1)(a) of Prevention of Corruption Act.
Arguing on behalf of the BRS leader, senior advocate CA Sundaram said the only charge against his client was that he had not followed the procedure while going through the sponsorship event (Formula-E race). The government had stepped into the shoes of the sponsor only to safeguard the event, as the original sponsor had backed out.
He said the agreement for conducting the race was already continuing and that criminal breach of trust or misappropriation was not made out. “When there was a change in the government, the new government refused to pay the next instalment to the organisers. There is an arbitration pending. If the decision of the previous government was wrong, the new government may have made a wise decision, but it doesn’t come under the Prevention of Corruption Act,” he argued.
Sundaram further argued that there is no reason given for delay in registration of FIR which was 14 months later. He charged that it was a case of “political vendetta” against KTR.
Arguing for the ACB, state advocate general A Sudarshan Reddy explained how the police had prima facie found irregularities in the case, which was registered after taking due permission from the governor of the state for prosecution.
The advocate general said the FIR was not an encyclopaedia to have all the evidence. “Any amount over ₹10 crore needs a government sanction. Here, ₹54 crore were given without any sanction and concurrence from the finance department. The payments were made at the approval of KTR,” he said.
Ruckus in assembly
Earlier in the day, the BRS MLAs created a ruckus in the state assembly demanding the government discuss the issue of the FIR registered against KTR in the Formula-E race issue, for which the party had given the notice for an adjournment motion.
As state revenue minister P Srinivas Reddy was initiating a discussion on the Bhu Bharati bill, the BRS MLAs, led by former minister T Harish Rao, stormed the podium, insisting that the House discussed the Formula-E race issue.
State assembly speaker Gaddam Prasad requested the opposition members not to disrupt the House, which was discussing the crucial Bhu Bharathi Bill benefiting the people across the state. He said he would look into KTR’s issue after discussing it with them in his chambers.
The BRS MLAs refused to heed to his request and continued to raise slogans, holding placards demanding justice. As they began rushing towards the podium, the marshals prevented them resulting in utter chaos. Both the BRS and the Congress members hurled papers at each other, forcing the Speaker adjourn the House for 15 minutes.
After the House reassembled, chief minister A Revanth Reddy said he was ready for a discussion on the ACB case against KTR, provided there were no legal obstacles for the time. “I am ready to discuss this matter anytime and anywhere. If necessary, I am even willing to go to the BRS office for a discussion. After all, ₹55 crore is not a small matter,” he said.
Revanth Reddy questioned why KTR had not insisted on a debate on the Formula-E car racing issue in the assembly in the last one year. He said he had come to know about the irregularities in the matter only after the representatives of the Formula E car race organisers approached him in December last year.
“It was not just ₹55 crore, but the FEO race was to make money to the extent of ₹ 600 crore. They asked me for approval, indicating they would conduct the race again if given the green signal. I was surprised how funds worth crores of rupees from HMDA accounts were directly transferred to a company in London,” Revanth Reddy said, adding that because he had ordered a stoppage of the race, the government had saved ₹450 crore.
“Since an ACB investigation is underway into this car racing issue and since a petition filed by KTR is being heard in the high court, I cannot disclose more details,” the chief minister added.
