Former HMDA Official Interrogated by ACB in Formula-E Investigation
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Hyderabad, Jan 10 (NationPress) B.L.N. Reddy, the ex-chief engineer of the Hyderabad Metropolitan Development Authority (HMDA), presented himself at the Anti-Corruption Bureau (ACB) on Friday to discuss possible financial misconduct associated with the Formula-E race.
Reddy arrived at the ACB office located in Banjara Hills around 10 a.m. to meet with the investigating officers.
He stands as the third accused in the case filed by the ACB, which investigates alleged financial discrepancies during the Formula-E race held in Hyderabad in 2023, a period when the Bharat Rashtra Samithi (BRS) was in governance.
The ACB is scrutinizing the transfer of approximately Rs.55 crore from HMDA to the UK-based Formula-E Operations (FEO) in foreign currency, purportedly breaching established protocols.
Reddy's appearance comes just a day after the BRS working president and former minister K. T. Rama Rao faced questioning from the agency for over six hours.
On Wednesday, the previous special chief secretary of the Municipal Administration & Urban Development (MA&UD) department, Arvind Kumar, was also interrogated by the ACB for roughly six hours.
The senior IAS officer subsequently met with the Enforcement Directorate (ED) the following day, enduring a nine-hour questioning session.
The central agency is examining potential violations of the Foreign Exchange Management Act (FEMA) and whether any money laundering activities occurred through the funds transferred to FEO.
According to Arvind Kumar, the then MA&UD minister K.T. Rama Rao directed him to expedite the payment, arguing that any hindrance to the Formula E race could tarnish the state's public image.
On Wednesday, Reddy faced a nine-hour interrogation by the ED, focusing on various facets of the Rs.55 crore transfer to FEO in foreign exchange, allegedly contravening the provisions of FEMA and the Prevention of Money Laundering Act (PMLA).
The former chief engineer was questioned regarding the lack of clearance from the Reserve Bank of India (RBI) before the money transfer.
He reportedly informed the ED that he was merely following the instructions provided by Arvind Kumar.
K.T. Rama Rao, identified as the primary accused in the case, has been summoned by the ED for questioning on January 16.
Last month, the ACB filed a FIR against K.T. Rama Rao, Arvind Kumar, and Reddy for alleged irregularities linked to payments made by HMDA to FEO and related entities without adhering to the mandated financial protocols.
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. Following this, the ED initiated a probe under the PMLA.
