Hyderabad: The Enforcement Directorate (ED) will likely register a money laundering case against Bharat Rashtra Samithi (BRS) working president KT Rama Rao (KTR) in the alleged Formula E fraud worth Rs 55 crore.
The case pertains to an alleged unauthorised transfer of Rs 55 crore from the Hyderabad Metropolitan Development Authority (HMDA) to Formula E Operations (FEO) without proper approvals.
As per several media reports, the ED’s move follows an FIR filed by the Anti-Corruption Bureau (ACB) on Thursday, naming KTR as the prime accused. Other officials named in the FIR include former Municipal Administration special chief secretary Arvind Kumar as accused number two and HMDA chief engineer BLN. Reddy.
It is to be noted that the Telangana ACB on Thursday booked KTR, the former Telangana MA &UD minister over the alleged Formula E fraud. The ED will formally request the ACB for a copy of the FIR against KTR before filing an Enforcement Case Information Report (ECIR).
Formula E race ‘scam’ in Hyderabad: KTR, Arvind Kumar booked
The ACB FIR alleges that the Rs 55 crore, allocated for a second Formula E race in Hyderabad, was transferred under directives from KTR. The event was ultimately cancelled after the Congress government assumed power in December 2023. The ACB and ED are investigating alleged financial mismanagement and fund misuse.
On December 12, Telangana Governor Jishnu Dev Varma authorized the prosecution of KTR and Arvind Kumar, following consultation with the Attorney General. Subsequently, the state cabinet directed chief secretary Santhi Kumari to initiate an ACB probe into the allegations.
KTR has denied any wrongdoing, asserting his willingness to face the allegations legally. He dismissed the accusations as politically motivated and challenged the Congress government to proceed with the investigation.
ACB action
The Telangana Anti-Corruption Bureau (ACB) on Thursday, December 19 filed an FIR against Bharat Rashtra Samiti (BRS) working president KT Rama Rao (KTR), IAS officer Arvind Kumar, and others in connection with the alleged Formula E race scam.
Following a letter from the chief secretary, authorities are investigating alleged irregularities in organizing the Formula E race held in Hyderabad in 2023. The Hyderabad Metropolitan Development Authority (HMDA) reportedly paid Rs 45 crores to the foreign company Formula E Operations (FEO) violating RBI guidelines.
A case has been registered under sections 13 (1) A, 13 (2) PC Act, 409, 120 B. ACB is now set to question former MAUD minister, KTR and senior IAS officer Arvind Kumar regarding the case.
