December 28, 2024: The Enforcement Directorate (ED) has summoned Bharat Rashtra Samithi (BRS) working president KT Rama Rao (KTR), senior IAS officer Arvind Kumar, and former Hyderabad Metropolitan Development Authority (HMDA) chief engineer BLN Reddy in connection with alleged financial irregularities amounting to ₹55 crore related to the hosting of the Formula-E race in Hyderabad in February 2023.
KTR has been directed to appear before the ED on January 7, 2025, while Kumar and Reddy are scheduled for questioning on January 2 and 3, respectively.
The summons follow the registration of a money laundering case by the ED under the Prevention of Money Laundering Act (PMLA), based on an FIR filed by the Telangana Police’s Anti-Corruption Bureau (ACB) earlier this week. Sources confirm that the accused listed in the ED’s Enforcement Case Information Report (ECIR) match those named in the ACB’s FIR.
KT Rama Rao, son of former Telangana Chief Minister K Chandrashekhar Rao, is listed as accused number one in the case, followed by Arvind Kumar and BLN Reddy. The allegations center on unauthorized payments, including some in foreign currency, made during the previous regime to organize the Formula-E race, an international motorsport event.
Responding to the allegations, KTR, 48, has denied any wrongdoing. “Where is the corruption in this? We paid ₹55 crore, and Formula-E acknowledged the payment,” he said, emphasizing that the transactions were straightforward and accounted for.
KTR further clarified that the funds were transferred from an official Hyderabad Metropolitan Development Authority account with the Indian Overseas Bank, asserting transparency in the process.
The Formula-E event was promoted as a milestone achievement for Hyderabad, showcasing the city as a hub for global sporting events and sustainable technology. However, the recent probe has cast a shadow over the financial management of the high-profile event.
As the investigation unfolds, the case has stirred political and administrative circles, with implications for both the ruling BRS and Telangana’s governance.