ED Issues New Summons to K.T. Rama Rao for January 16 Regarding Formula-E Investigation

Hyderabad, Jan 7 (NationPress) The Enforcement Directorate (ED) has sent a new notice to Bharat Rashtra Samithi (BRS) working president K.T. Rama Rao on Tuesday, instructing him to appear for questioning on January 16 related to the Formula-E race case.

The Central agency issued this notice after the former minister failed to show up before the ED earlier in the day on Tuesday (January 7) and requested additional time for his appearance.

The ED granted the BRS leader's request.

This latest notice from the ED comes shortly after the Telangana High Court dismissed K.T. Rama Rao’s plea to annul the First Information Report (FIR) filed last month by the Anti-Corruption Bureau (ACB).

Special Chief Secretary Arvind Kumar and former Chief Engineer of Hyderabad Metropolitan Development Authority (HMDA) B.L.N. Reddy, who have also been implicated alongside K.T. Rama Rao, are scheduled to appear before the ED on January 8 and January 9 respectively.

They had previously been summoned for January 2 and January 3.

Both individuals requested an extension of 2-3 weeks to submit their documents and appear.

The ED is conducting its investigation under the Prevention of Money Laundering Act (PMLA), based on an FIR filed by the ACB.

The agency is examining potential breaches of the Foreign Exchange Management Act (FEMA).

On December 29, the ACB initiated a case against K.T. Rama Rao and two others for alleged misconduct in the organization of the Formula E-car race in 2023 during the BRS's tenure.

The FIR was lodged 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.

This FIR, filed on a complaint by the Municipal Administration and Urban Development Principal Secretary, Dana Kishore, alleges financial irregularities involving payments exceeding Rs.54.88 crore made by the HMDA to Formula-E Operations Limited (FEO) and related entities, bypassing standard financial protocols.

The payments to FEO were executed between September and October 2023, even though FEO had terminated its contract with the Telangana government during that timeframe.

This amount also led to a tax obligation of Rs. 8.06 crore, which was covered by the HMDA.

A tripartite agreement, signed in October 2022 between the Telangana government, FEO, and event sponsor Ace Nxt Gen Pvt. Ltd., restricted the State government’s financial liabilities.

The FIR claims that disputes between FEO and Ace Nxt Gen Pvt. Ltd. resulted in the government incurring financial responsibilities without the necessary regulatory approvals, consequently harming the state treasury.

The day following the ACB's FIR, the ED also filed an Enforcement Case Information Report (ECIR) under the Prevention of Money Laundering Act against K.T. Rama Rao, Arvind Kumar, and Reddy.

Additionally, the ED is probing whether financial agreements exceeding Rs. 600 crore for future seasons breached legal and financial regulations.