KT Rama Rao’s Arrest Paused Till Verdict On His Petition In Formula E Racing Case

The Telangana High Court has paused KT Rama Rao’s arrest till a decision has been taken on his petition in alleged Formula E racing scam.

KT Rama Rao will not be arrested till a decision is taken on his petition, the Telangana High Court said today, providing the former state minister some relief in the in alleged Formula E racing case. The arguments were completed on Mr Rao’s petition to cancel the case against him today, and the court suspended the decision.

The next hearing of the matter will be on December 31. The court, however allowed the investigation to continue.

A corruption case has been lodged against Mr Rao — the leader of the Bharat Rashtra Samithi and popularly known as KTR — in connection with alleged irregularities in the Formula E car race in Hyderabad. He has been accused of misusing government funds and his authority as the Municipal Administration and Urban Development minister.

The Anti-Corruption Bureau, which filed the case, alleged that Rs 55 crore was paid to the Formula E organisers by the state government on the verbal orders of Mr Rao. This was done without any cabinet clearance and was in violation of the Reserve Bank of India guidelines.

The RBI imposed a fine of Rs 8 crore on the then Telangana government for unauthorised transactions, which was later paid by the Congress government after coming to power.

The Enforcement Directorate, meanwhile, has summoned Mr Rao to appear for questioning on January 7 in an alleged money laundering case linked to the alleged financial irregularities in the Formula-E race, reported news agency Press Trust of India, quoting official sources.

(INPUT FROM AGENCIES ONLINE)