The Supreme Court on Wednesday declined to entertain a plea by BRS working president K.T. Rama Rao seeking to quash an FIR lodged against him in connection with financial irregularities alleged in the Formula E race organization. The bench, led by Justices Bela M. Trivedi and Prasanna B. Varale, expressed its unwillingness to intervene in the high court’s earlier decision, leading to the withdrawal of Rao’s appeal.
The controversy centers around the alleged unauthorized disbursement of Rs 55 crore, mostly in foreign exchange, to the Formula E Organization by the Hyderabad Metropolitan Development Authority (HMDA) under Rao’s directive. The High Court highlighted that these payments were made without requisite approvals from the state cabinet or the finance department, necessitating further investigation into potential misappropriation of funds and corrupt practices.
On January 7, the High Court had refused to quash the FIR or continue Rao’s protection from arrest, stating the need for thorough investigation to ascertain whether the payments were made with dishonest intent for personal or third-party gain. The case was registered by the state’s Anti-Corruption Bureau (ACB) on December 19 last year, implicating Rao under various sections of the Prevention of Corruption Act and the Indian Penal Code.
The allegations suggest a breach of trust and criminal conspiracy that potentially cost the state exchequer approximately Rs 55 crore. The planned Formula E race, initially set for February 2024, was canceled following the election of the Congress government in December 2023.
Rama Rao, who served as the municipal administration minister in the previous BRS government, has also been summoned by the Enforcement Directorate (ED) over the case. He has requested additional time to respond to the summons. The FIR names him as the primary accused, along with senior IAS officer Arvind Kumar and retired bureaucrat B.L.N. Reddy.
