Ex-Telangana minister K T Rama Rao summoned by Enforcement Directorate in Formula E case

Hyderabad: The Enforcement Directorate (ED) has summoned BRS working president and former minister K T Rama Rao, for questioning in connection with the alleged irregularities and corruption in conducting Formula E Race during the BRS regime.

Along with KTR, ED also summoned senior IAS officer Arvind Kumar and HMDA former chief engineer BLN Reddy. ED has summoned KTR to appear on January 7, Arvind Kumar and BLN Reddy on January 2 and 3, respectively.

The probe is being conducted under the Prevention of Money Laundering Act (PMLA), based on an FIR filed by the Telangana ACB. The ED issued the summons after registering an Enforcement Case Information Report (ECIR) based on the FIR the Telangana ACB filed a few days ago.

Apart from PMLA, ED is also probing the possible violations under FEMA in fund transfers to foreign companies in the Formula E Race.

On December 19, Telangana's ACB registered an FIR against KTR and two other senior government officials for alleged misuse of government funds and irregularities in organising the Formula E race during the BRS regime.

The FIR names KTR as the prime accused, the then MA & UD secretary, A Arvind Kumar as the second accused, and the former chief engineer of the Hyderabad Metropolitan Development Authority (HMDA), BLN Reddy as the third accused.

They were booked under Sections 13(1)(A) and 13(2) of the Prevention of Corruption Act, along with Sections 409 and 120(B) of the IPC. It is alleged that Rs 55 crore, including taxes, was paid by HMDA to the foreign company FEO in violation of RBI guidelines. The FIR also mentions a statement by Arvind Kumar, who said that he transferred the funds upon the instructions of the competent authority, the then MA&UD minister, KTR. Recently, ACB had recorded the statement of the current MA&UD secretary, Dana Kishore.

Reports indicate that neither the Cabinet nor the Finance Department approved the payments. According to the FIR, HMDA paid Rs 55 crore in two installments to a foreign company, Formula E Organisers (FOE), in violation of RBI guidelines. The RBI imposed a fine of Rs 8 crore on the Telangana government for unauthorised transactions, which the Congress government later paid after assuming power.

KTR is accused of directing the misuse of authority, while Arvind Kumar and EX HMDA Chief Engineer BLN Reddy are also implicated.

Following a nod from the governor, Jishnu Dev Verma, to prosecute the BRS leader, state chief secretary A Santhi Kumari wrote to the ACB Director General to initiate a probe into KTR's role in the alleged misuse of funds.

Later KTR approached the high court seeking protection from arrest, which was granted. The Telangana High Court granted temporary relief to KTR, directing ACB not to arrest him until December 30. The High Court posted the next hearing to December 30.