Hyderabad, January 7: In a setback to BRS Working President K T Rama Rao, the Telangana High Court on Tuesday refused to quash the FIR against him in connection with the Formula E race issue, removing the protection against the arrest given to him. On December 31, 2024, the HC had reserved its orders on the petition filed by the former minister after hearing the arguments made by the state government as well as the defence in the case registered by the Anti- Corruption Bureau (ACB) which alleged that Rama Rao authorised payments to the tune of Rs 55 crore, most of it in forex, to Formula E Organisation without necessary approvals.

High Court Judge Justice K Lakshman in his order said the allegations indicate that Rama Rao without any approval from the State Cabinet or the finance department directed the HMDA (Hyderabad Metropolitan Development Authority) to pay huge sums of money to a foreign company. "Whether the petitioner directed the said payments with a dishonest intention to cause gain to himself or third parties is required to be investigated. The allegations when read together make out a prima facie case of wrongdoing and misappropriation of funds of the HMDA," the order said. Formula E Race Case: Days After Telangana Cabinet Gives Nod to ACB To Initiate Action Against KT Rama Rao, BRS Leader Says ‘Ready To Face It Legally’.

The investigating agency should have a reasonable opportunity to investigate and collect evidence. Therefore, the court cannot "haste and thwart" the investigation in the present case, it opined. The court had earlier restricted ACB from arresting Rama Rao, son of BRS president and former Telangana chief minister K Chandrasekhar Rao, until the orders were pronounced and the present order removed that protection. After the court's order, Rama Rao, however, expressed confidence that truth would triumph in the end and he would come back stronger.

Attacking the Congress government, he said its actions would not cow him down. "Mark my words, our comeback will be stronger than this setback. Your lies won't shatter me. Your words won't diminish me. Your actions won't obscure my vision. This cacophony won't silence me!Today's obstacles will give way to tomorrow's triumph," he said in a post on 'X'. Rama Rao said he respects the judiciary and has an unwavering belief that justice will prevail. Following the High Court's verdict, Rama Rao held discussions with BRS leaders and legal advisors.

Senior BRS leader T Harish Rao alleged this is a false case foisted by A Revanth Reddy government as part of "diversion politics". The state government has been facing severe opposition from the public with respect to the implementation of farmers financial assistance scheme 'Rythu Bandhu', he claimed.m He said they have been discussing with legal experts on the future course of action. "We know that these kind of false cases will be foisted against our leaders. We are prepared to face them," Harish Rao said. KTR Reaches ACB Office for Questioning in Formula E Race Case.

He further said the High Court in its order stated that the investigation can be conducted in the case, but it did not say there is corruption. However, he added they would cooperate with the investigation. When contacted, a senior member of Rama Rao's legal team told PTI they are yet to receive the High Court order copy, based on which they will take a call about whether to approach the Supreme Court and also as per his client's decision. During the arguments, Advocate General A Sudarshan Reddy pointed out that payments were made to Formula E Organisation without following business rules and necessary approvals while the defence advocates argued that there was no criminality in the case.

The AG also argued that the case cannot be quashed at the FIR stage when the investigation is going on. The ACB had last week served a notice to the BRS MLA to appear before it on January 6, but as he left the agency's office without appearing before the officials on Monday, he was again issued fresh notice for appearance on January 9. The ACB on December 19 registered a case against Rama Rao, also known as KTR, over alleged payments, some of it in foreign currency without approvals, to conduct the race in 2023 during the previous regime.

The case was registered under relevant sections of the Prevention of Corruption Act and IPC dealing with criminal misappropriation, criminal misconduct, criminal breach of trust and criminal conspiracy that allegedly resulted in loss to the government exchequer to the tune of about Rs 55 crore.

Though the race was supposed to be held in February 2024 as well, it was cancelled after the Congress government assumed office in December 2023. Rama Rao, who was Municipal Administration Minister during the previous BRS regime, was also summoned by the ED for questioning on January 7 over alleged irregularities in conducting the race in Hyderabad, though he sought time. The FIR named Rama Rao, an MLA now, as prime accused, senior IAS officer Arvind Kumar and retired bureaucrat BLN Reddy as accused no 2 and 3 respectively.