The court held that allegations of misappropriation and abuse of power by a public servant warrant investigation, and an FIR should not be quashed if it discloses a prima facie case.

ORDER :

1. The present criminal petition is filed under Section 528 of the Bharatiya Nagrik Suraksha Sanhita (hereinafter ‘BNSS’) seeking to quash the criminal proceedings arising out of Crime No. 12/RCO- CIU-ACB/2024 dated 19.12.2024 registered by Respondent No. 1 (hereinafter ‘ACB’) under Sections 409 r/w 120B of the Indian Penal Code (hereinafter ‘IPC’) and Sections 13(1)(a) r/w 13(2) of the Prevention of Corruption Act, 1988 (hereinafter ‘PCA’).

2. Heard Mr. Siddharth Dave, learned Senior Advocate representing Mr. A. Prabhakar Rao, learned advocate appearing for the Petitioner. Also, heard Mr. A. Sudarshan Reddy, learned Advocate General representing Mr. T. Bala Mohan Reddy, learned Standing Counsel for the ACB i.e., Respondent No. 1 and Mr. C.V. Mohan Reddy, learned Senior Advocate representing Mr. Tera Rajinikanth Reddy, learned Additional Advocate General appearing for Respondent No. 2.

FACTS OF THE CASE:

3. The impugned criminal proceedings i.e., Crime No. 12/RCO-CIU-ACB/2024 (hereinafter ‘FIR’) was registered based on the complaint lodged by Respondent No. 2 (hereinafter ‘complainant’). It is relevant to note that the complainant herein is the current Principal Secretary to the Government of Telangana, Municipal Administration & Urban Development (hereinafter ‘MA & UD’) department.

4. As per the complaint, the allegations leveled against the petitioner herein are as follows:-

The Petitioner herein was the erstwhile Minister of the MA &UD department and on his initiative, the Government of Telangana decided to host a car racing event titled ‘FIA Formula E Championship’ in Hyderabad city. Initially, a tripartite agreement dated 25.10.2022 was entered into between M/s Formula E Operations Ltd. (hereinafter ‘FEO’), the MA & UD department, Government of Telangana and M/s Ace Nxt Gen Private Ltd. (hereinafter ‘ACE’). As per the terms of the said tripartite agreement, it was agreed that ACE would be the promoter of the event and would be obligated to make payments to FEO as per Schedule IV of the agreement. The MA & UD department was to act as a host and provide all the civic amenities. Further, the said tripartite agreement contemplated conducting four events in Hyderabad i.e., one event each in Seasons 9, 10, 11 and 12. The total fee agreed for Seasons 9 and 10 was £ 90,00,000/- ((ninety lakh Great British pounds, hereinafter referred to ‘GBP’ only).

5. Season 9 of the said car race was conducted successfully. However, as per the complaint and the Office Note dated 14.12.2023 referred to in the complaint, ACE backed out as the promoter and the name of Hyderabad did not feature in the list of cities hosting an event in Season 10. Therefore, it is alleged that the Petitioner herein had discussions with the officials of FEO to get the Government of Telangana to act as a promoter/host and conduct an event for Season 10 in Hyderabad. In furtherance of these talks, allegedly, the Petitioner herein ‘telephonically’ directed the Hyderabad Metropolitan Development Authority (hereinafter ‘HMDA’) to act as a promoter and host the event. As per the complaint, the Metropolitan Commissioner, HMDA had put a file before the Petitioner herein on 27.09.2023 seeking approval of the draft agreement in which HMDA was shown as the promoter, administrative sanction for payment of £90,00,000/- (ninety lakh GBP) in addition to Rs. 50,00,00,000/- (rupees fifty crores only) was also sought along with the permission to pay the first installment of £22,50,000/- (twenty-two lakhs GBP). It is alleged that the Petitioner herein approved the said file.

6. As the Petitioner approved the file, HMDA remitted the first installment of £ 22,50,000/- (twenty-two lakhs fif