The Telangana High Court on Wednesday allowed a lawyer to accompany Bharat Rashtra Samithi (BRS) working president KT Rama Rao during his questioning at the Anti-Corruption Bureau (ACB) office in connection with the ongoing investigation into alleged financial irregularities in the Formula E race held in Hyderabad in February 2024.

However, the court clarified that the lawyer would only be allowed to observe the proceedings from a library room adjacent to the examination chamber and not participate directly in the questioning.

The court ordered KTR, a former minister, to appear before the investigating officer on Thursday at 10:30 am. His counsel confirmed that former additional advocate general J Ramachander Rao would be present in the library during the session.

KTR had previously refused to appear for questioning on January 6, citing the denial of lawyer assistance. Following this, the ACB issued a fresh notice for him to appear on January 9. The case involves allegations of ₹55 crore in payments to the Formula E Organisation Ltd, which were reportedly made without necessary approvals.

The court also refused to allow audio or video recording of the questioning, though it was permitted under CCTV surveillance. While KTR’s counsel referred to Supreme Court rulings allowing lawyers' presence during investigations, ACB’s additional advocate general cited contrary judgments. The court emphasized that the lawyer’s role would be limited to observation, not direct interaction during the investigation.

In related developments, senior IAS officer Arvind Kumar, a key accused in the case, was questioned for three hours by the ACB. Kumar reportedly stated that the ₹55 crore transfer was done under KTR's instructions. The Enforcement Directorate also questioned former HMDA chief engineer BNL Reddy regarding the financing of the race.