KTR Interrogated by ED in Formula-E Investigation
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Synopsis
K. T. Rama Rao, the BRS working president, appeared before the ED in Hyderabad regarding the Formula-E race case, facing protests from supporters. The investigation probes potential money laundering and irregularities in fund transfers to Formula-E Operations.
Key Takeaways
- KTR appeared before the ED amid protests.
- Investigation under PMLA and FEMA.
- Rs 55 crore transferred without RBI clearance.
- Support from BRS members outside ED office.
- Police deployed to maintain order during protests.
Hyderabad, Jan 16 (NationPress) Bharat Rashtra Samithi (BRS) working president and former minister K. T. Rama Rao appeared before the Enforcement Directorate (ED) on Thursday regarding the Formula-E race case.
He arrived at the ED's regional office in Basheerbagh around 10:45 a.m. under strict security measures.
Accompanied by one lawyer, KTR faced a tense atmosphere as numerous BRS supporters gathered to express their backing, leading to protests and slogans directed against the Central government.
Police intervened, detaining demonstrators, including women, who were taken away in police vans.
Among those showing support for KTR were former ministers Gangula Kamalakar and Srinivas Goud, along with BRS MLAs and MLCs.
To ensure public order, the police deployed around 200 officers, including three Assistant Commissioners and eight inspectors. Tear gas vehicles and water cannons were also stationed as a precaution.
The ED's investigation is being conducted under the Prevention of Money Laundering Act (PMLA), following an FIR lodged by the Anti-Corruption Bureau (ACB).
The agency is examining potential breaches of the Foreign Exchange Management Act (FEMA). Previously, the ED questioned two other individuals involved: former Municipal Administration and Urban Development department chief Arvind Kumar and former Hyderabad Metropolitan Development Authority (HMDA) chief engineer B. L. N. Reddy.
KTR is expected to be interrogated regarding the transfer of approximately Rs 55 crore to the UK-based Formula-E Operations (FEO), purportedly in breach of FEMA and PMLA regulations.
Questions may arise about the lack of Reserve Bank of India (RBI) clearance for this transaction.
Last month, the ACB filed an FIR against KTR, Arvind Kumar, and B. L. N. Reddy for alleged irregularities concerning payments made by HMDA to FEO and related entities, bypassing standard financial protocols.
The FIR encompasses Sections 13 (1) (A) and 13 (2) of the Prevention of Corruption Act, alongside Sections 409 and 120 (B) of the Indian Penal Code.
KTR had previously appeared before the ACB on January 9, undergoing over six hours of questioning about his involvement as the then minister of municipal administration and urban development in endorsing the agreement to host the Formula-E race in 2023, which occurred while BRS was in power.
The anti-corruption agency has also interrogated the other two individuals implicated. Recently, the Supreme Court dismissed KTR's petition to quash the investigation.
Earlier, on January 7, the Telangana High Court rejected the request to dismiss the FIR. On October 25, 2022, the Municipal Administration and Urban Development Department established a tripartite agreement with Formula E Operations (FEO) Limited and Ace Nxt Gen Private Limited (sponsor) to conduct Formula E races for seasons 9, 10, 11, and 12 in Hyderabad.
The 'Season 9' race took place on February 11, 2023, while the BRS government was in control. However, the sponsor later withdrew, citing financial losses.
Under KTR's ministry, HMDA transferred approximately Rs 55 crore to FEO, allegedly without the required approval from the Reserve Bank of India (RBI).
The Congress government, which took office in December 2023, annulled the E race and initiated an inquiry into the transfer of government funds, questioning compliance with established procedures and allegations of corruption.
