ED Issues Summons to KT Rama Rao for Formula-E Race Investigation on January 7
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Hyderabad, Dec 28 (NationPress) The Enforcement Directorate (ED) has called upon BRS working president and ex-minister, K.T. Rama Rao, along with senior IAS official Arvind Kumar and former chief engineer of the Hyderabad Metropolitan Development Authority (HMDA), B.L.N. Reddy, concerning the investigation into alleged financial misconduct tied to the Formula-E race held while the BRS was in governance.
The central agency has requested K.T. Rama Rao to appear before them on January 7, while Arvind Kumar and Reddy are instructed to show up on January 2 and January 3, respectively.
The ED's inquiry is being conducted under the Prevention of Money Laundering Act (PMLA), following a complaint lodged by the Anti-Corruption Bureau (ACB).
Additionally, the agency has launched a concurrent investigation under the Foreign Exchange Management Act (FEMA) to scrutinize potential infractions.
On December 29, the ACB filed a case against K.T. Rama Rao, Arvind Kumar, and Reddy for the purported irregularities surrounding the organization of the Formula E-car race last year.
The First Information Report (FIR) was initiated under several sections of the Prevention of Corruption Act regarding allegations of financial mismanagement during the Formula-E event when the BRS was in power.
This FIR was lodged based on a complaint from M. Dana Kishore, the Principal Secretary of Municipal Administration and Urban Development.
The complaint was made following approval from Governor Jishnu Dev Varma at the request of the state government.
The ACB filed the FIR 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.
The allegation states that more than Rs.54.88 crore was paid to UK-based Formula-E Operations Limited (FEO) and others in “gross violation of established procedures”.
Following the ACB's FIR registration, the ED also filed an Enforcement Case Information Report (ECIR) under the PMLA against K.T. Rama Rao, Arvind Kumar, and Reddy.
According to the original agreement, the government's obligations were restricted to providing infrastructure and civic amenities for the race.
However, there are claims that the HMDA disbursed funds despite not being a direct participant in the agreement.
The ED is also examining whether financial commitments exceeding Rs 600 crore for upcoming seasons breached legal and financial protocols.
