Hyderabad: The Enforcement Directorate (ED) has summoned former minister and Bharat Rashtra Samithi (BRS) leader KT Rama Rao (KTR) for questioning in the Formula E race case on Thursday, January 16.
The summon comes following the Telangana High Court’s dismissal of the minister’s plea to quash the Anti Corruption Bureau (ACB)’s FIR against him.
Timeline of Formula E case
- December 19: The Telangana Anti-Corruption Bureau (ACB) files an FIR against KTR, alleging misuse of government funds in conducting the Formula E race in Hyderabad. The FIR cites financial irregularities involving over Rs 54.88 crore in payments made to UK-based Formula E Operations Limited (FEO).
- December 20: ED files cases against KTR.
- December 21: KTR files a petition in the Telangana High Court seeking to quash the FIR filed by the ACB.
- December 27: The Telangana High Court grants relief from arrest to KTR until December 31, allowing him temporary protection while considering his petition.
- December 28: The Enforcement Directorate (ED) issues its first summon to KTR, directing him to appear for questioning on January 7, 2025. Senior IAS officer Arvind Kumar and former chief engineer BLN Reddy are summoned for questioning on January 2 and 3, respectively.
- December 31: The Telangana High Court extends the stay on KTR’s arrest until a verdict is pronounced on his plea. The court allows the investigation to continue while ensuring KTR’s protection from arrest.
January 2025
- January 2: Senior IAS officer Arvind Kumar appears before the ED for questioning regarding the alleged financial irregularities.
- January 3: Former HMDA chief engineer BLN Reddy appears before the ED for questioning.
- January 6:
- KTR arrives at the ACB office but refuses to enter without his lawyer present. After a standoff lasting about 45 minutes, he submits a written reply to the ACB’s notice and leaves without recording his statement. He expresses readiness to cooperate within his constitutional rights but requests details about the case and relevant documents.
- January 7:
- The Telangana High Court dismisses KTR’s petition to quash the FIR filed by the ACB, allowing the investigation to proceed without any further protection against arrest. The court’s decision follows arguments about alleged unauthorized payments made by KTR.
- KTR has been summoned by both ACB and ED for questioning by the ACB on January 9 and Janauray 16, respectively, regarding potential financial irregularities linked to the Formula E case.
ACB case against KTR in Formula E irregularities
ACB on December 29 had booked a case against KTR, special chief secretary Arvind Kumar and Hyderabad Metropolitan Development Authority (HMDA) former chief engineer BLN Reddy for alleged irregularities in organizing the Formula E-car race in 2023 when BRS was in power.
The First Information Report (FIR) was registered under Sections 13(1)(A) and 13(2) of the Prevention of Corruption Act, along with Sections 409 and 120(B) of the Indian Penal Code (IPC).
The FIR, registered on a complaint by Municipal Administration and Urban Development (MAUD) principal secretary Dana Kishore alleges irregularities in payments exceeding Rs 54.88 crore made by the HMDA to Formula-E Operations Limited (FEO) and associated entities without adhering to established financial procedures.
Formula E case: Telangana HC dismisses KTR’s plea to quash ACB FIR
According to the FIR, the payments were made to FEO between September and October 2023, despite FEO terminating its agreement with the Telangana government during the same period. This amount also incurred a tax liability of Rs 8.06 crore, which was borne by HMDA.
A tripartite agreement signed in October 2022 between the Telangana government, FEO, and event sponsor Ace Nxt Gen Pvt Ltd had limited the State government’s financial responsibility.
The FIR alleged that disputes between FEO and Ace Nxt Gen Pvt Ltd led to the government assuming financial liability without regulatory approvals, causing losses to the exchequer.
