KT Rama Rao case: The Telangana High Court, while hearing the petition of state minister KT Rama Rao in the Formula E racing scam, on Tuesday (December 31, 2024) has stayed his arrest. This stay will continue until the final decision is taken on the petition in this case. This case pertains to alleged financial irregularities and money laundering in organizing the Formula-E race to be held in Hyderabad in 2023.
Actually, KT Rama Rao had filed this petition in the Telangana High Court to avoid arrest and quash the case. On December 31, the court completed the hearing and postponed the decision for the time being. At the same time, as an interim relief, the arrest of KTR has been stayed.
RBI had imposed a fine of Rs 8 crore
This case is related to the payment of Rs 55 crore which was made for organizing the Formula-E race. Out of which Rs 45 crore was paid in foreign currency, which was in violation of the guidelines of the Reserve Bank of India (RBI). This payment was made without cabinet approval. RBI had imposed a fine of Rs 8 crore on the then Telangana government for this unauthorized transaction. Which was later paid by the Congress government after coming to power.
KTR’s sister was also made an accused
In this case, along with KT Rama Rao, the name of his sister K. Kavitha has also come up. KT Rama Rao (KTR) is the main accused in this case. Apart from this, Arvind Kumar, who is the former Municipal Administration and Urban Development Secretary, is the second accused. The third accused is BLN Reddy. He is the former Chief Engineer of Hyderabad Metropolitan Development Authority (HMDA). According to the ACB, financial irregularities came to light in the Formula E event, in which Rs 55 crore was paid to the Formula E organizers without cabinet approval.
The Anti-Corruption Bureau (ACB) of Telangana Police had first registered an FIR in the matter, after which the ED filed an information report (ECIR) under PMLA (Prevention of Money Laundering Act) in February 2023.
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