In relation to purported financial violations connected to the Formula E event hosted in Hyderabad in February 2023, BRS leader and former Telangana minister KT Rama Rao has been called by the Enforcement Directorate (ED). In the same matter, former chief engineer BLN Reddy of the Hyderabad Metropolitan Development Authority (HMDA) and senior IAS official Arvind Kumar have also been called.
On January 7, KTR was summoned, and on January 2 and 3, respectively, Mr. Kumar and Mr. Reddy will be questioned. The investigation comes after the Telangana Anti-Corruption Bureau (ACB) filed a formal complaint. Unauthorised money transactions worth Rs 55 crore from the HMDA to Formula E Operations Limited (FEO) are at the heart of the accusations. Despite the state’s initial agreement restricting its role to supplying infrastructure and municipal amenities for the event, investigators claim that the monies were transferred without required official permissions. In addition to a larger financial commitment of more than Rs 600 crore for next races, further transfers of Rs 54.8 crore for the 2023 race are also being considered.
KTR, Mr. Kumar, and Mr. Reddy are listed as accused in the Enforcement Case Information Report (ECIR) that the ED has filed. The family of former Telangana Chief Minister K Chandrashekar Rao is involved in this second money laundering case. In the Delhi excise policy case, KTR’s sister, K Kavitha, was earlier detained and then freed on bail. The BRS party faces yet another legal and political obstacle with the ED’s summons.
