The Telangana High Court has temporarily barred the arrest of Bharat Rashtra Samithi (BRS) leader KT Rama Rao (KTR) in connection with alleged financial mismanagement during the Formula E racing event held in Hyderabad.
The court’s order, issued on December 20, stipulates that KTR cannot be detained by authorities until December 30, 2024, providing a brief reprieve to the former minister as investigations continue.
The Telangana High Court has scheduled the next hearing for December 27. KTR’s legal team, led by senior advocates, has argued that the case lacks substantive proof of corruption, portraying it as a procedural oversight at worst.
What’s the case about?
The controversy centers around the Formula E race, part of Telangana’s E-Mobility Week, an initiative under the previous BRS government led by KTR’s father, then Chief Minister K. Chandrashekar Rao.
The event, held in February 2023, was intended to boost Hyderabad’s image as a center for electric vehicle technology and international sports. However, it became a focal point of scrutiny when the new Congress government, under Chief Minister Revanth Reddy, questioned the financial dealings associated with the race.
The Anti-Corruption Bureau (ACB) of Telangana filed an FIR against KTR, alleging that he, along with senior officials like then-Principal Secretary Arvind Kumar and former Hyderabad Metropolitan Development Authority (HMDA) chief engineer BLN Reddy, misused government funds.
The ACB alleges that approximately Rs 55 crore was transferred to a foreign company for organizing the race, potentially violating financial regulations and bypassing necessary clearances from the Reserve Bank of India (RBI).
What did the court say?
KTR approached the Telangana High Court through a lunch motion petition to quash the FIR lodged against him.
While the court did not dismiss the case, it provided interim relief by ordering that no coercive action be taken against the BRS leader until the end of the month. The ruling was passed by Justice Natcharaju Shravan Kumar Venkat, who also allowed the ACB to proceed with their investigation and mandated KTR’s cooperation.
The court’s decision has fueled political discourse, with BRS supporters claiming this as a victory against what they describe as a political witch hunt by the Congress-led state government.
Congress leaders said that the interim protection does not absolve KTR of accountability and that the investigation should reveal the truth behind the financial transactions.
Political repercussions
The legal battle has major implications for Telangana’s political landscape.
The case has not only put KTR’s political standing into question but has also highlighted the practices of the previous administration.
The BRS has been vocal in defending its record, emphasizing the economic benefits the race brought to Hyderabad, including increased global visibility and investments in the EV sector.
Meanwhile, the Enforcement Directorate (ED) entered the fray by registering a case against KTR under the Prevention of Money Laundering Act, 2002, based on the ACB’s FIR. This dual investigation could have broader implications, potentially involving more figures from the past government.