ED Summons KT Rama Rao and Others in Connection With Formula E Race Case
Hyderabad, 28th December 2024: The Enforcement Directorate (ED) has summoned BRS working president and former minister KT Rama Rao, along with other individuals, in connection with the Formula E race case. KT Rama Rao is required to appear before the ED on January 7. Senior IAS officer Arvind Kumar and former HMDA chief engineer BLN Reddy have also been issued notices, with Arvind summoned on January 2 and Reddy on January 3. The investigation is being conducted under the Prevention of Money Laundering Act (PMLA), following an FIR by the Anti-Corruption Bureau (ACB).
In addition to the ongoing probe, the ED has decided to initiate a separate investigation into possible violations of the Foreign Exchange Management Act (FEMA). This will examine whether funds were transferred abroad and if foreign exchange regulations were properly followed. The Enforcement Case Information Report (ECIR) identifies KT Rama Rao, Arvind Kumar, and BLN Reddy, with the charges involving financial irregularities, including the unauthorized transfer of Rs 55 crore from the Hyderabad Metropolitan Development Authority (HMDA) to Formula E Operations Limited (FEO) without necessary approvals.
The agreement stipulates that the government’s role was limited to providing infrastructure and civic amenities. However, the allegation is that HMDA released funds despite not being a direct party to the agreement, raising concerns about procedural compliance and financial oversight. Investigators are focusing on the transfer of Rs 54.8 crore for the 2023 race and assessing whether the financial commitments exceeding Rs 600 crore for upcoming seasons breached legal and financial protocols.
