The Telangana High Court on Tuesday dismissed the petition filed by BRS working president KT Rama Rao (KTR) seeking to quash the FIR against him in connection with the Formula E race scam. The court found a prima facie case of wrongdoing and misappropriation of funds from the Hyderabad Metropolitan Development Authority (HMDA).

The single bench, led by Justice K Lakshman, also rejected the oral plea from Rao’s counsel for a 10-day stay on his arrest to allow time for filing an appeal.

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Following the judgment, the Anti-Corruption Bureau (ACB) initiated raids at the offices of Ace NextGen, a subsidiary of Greenko (sponsors of the Formula E race), and other associated entities, including Ace Urban Race and Ace Urban Developers.

Premises linked to IAS officer Arvind Kumar and HMDA official BLN Reddy, also named as accused, were searched.

In his order, Justice Lakshman stated: “The allegations indicate that the petitioner, without any approval from the State Cabinet or the finance minister, directed the HMDA to pay large sums of money to a foreign company. Whether this was done with dishonest intentions to cause personal gain or benefit third parties requires investigation. The allegations make out a prima facie case of wrongdoing and misappropriation of HMDA funds, warranting an investigation. Investigating agencies must be given reasonable opportunity to collect evidence.”

The ACB case involves alleged irregularities amounting to Rs 54.88 crore in the Formula E race deal. Municipal Administration and Urban Development Secretary M Dana Kishore alleged that foreign remittances were made without prior approval from the state Cabinet or finance ministry, resulting in an additional tax burden of Rs 8.06 crore on the cash-strapped HMDA. Rao’s counsel argued that the case was politically motivated.

Despite the setback, KTR remained defiant, posting on the micro-blogging platform X: “Mark my words, our comeback will be stronger than this setback. I respect our judiciary and remain unwavering in my belief that justice will prevail. My fight for truth continues, and soon the world will witness it.”

Former finance minister and BRS leader Harish Rao dismissed allegations of quid pro quo, asserting that no funds were given to Greenko and no special favors were granted. The Congress alleged that BRS received Rs 41 crore from Greenko through electoral bonds, a claim BRS countered by stating that all major political parties, including Congress and BJP, received funds from the same source.

Meanwhile, the BRS shared photos of Congress posters in New Delhi highlighting a revised promise to farmers. Chief Minister Revanth Reddy announced a reduced incentive of Rs 12,000 instead of the Rs 15,000 pledged during the elections, prompting criticism from political opponents.