ED summons BRS leader K T Rama Rao over financial irregularities in Formula E race

Formula E race case: ED summons KTR on Jan 7

The Enforcement Directorate (ED) has issued a summons to BRS leader and former Telangana minister K T Rama Rao (KTR) regarding alleged financial irregularities tied to the Formula E race held in Hyderabad in February 2023. Senior IAS officer Arvind Kumar and former Hyderabad Metropolitan Development Authority (HMDA) chief engineer BLN Reddy have also been summoned in connection with the case.

KTR is scheduled to appear before the ED on January 7, while Mr. Kumar and Mr. Reddy are set for questioning on January 2 and 3, respectively. The probe stems from an FIR lodged by the Telangana Anti-Corruption Bureau (ACB), which highlights significant financial misconduct.

Allegations in the case

The investigation focuses on unauthorized financial transfers amounting to Rs.55 crore from the HMDA to Formula E Operations Limited (FEO). Officials allege that the funds were transferred without the required government approvals. The state’s original agreement for the event limited its involvement in providing infrastructure and civic amenities.

Further scrutiny has revealed additional transfers of Rs.54.8 crore for the 2023 race, alongside a broader financial commitment of over Rs.600 crore for future Formula E races. Investigators are examining these transactions for potential violations of financial protocols.

Enforcement Case Information Report (ECIR)

The ECIR registered by the ED names K T Rama Rao, Arvind Kumar, and BLN Reddy as accused in the case. The investigation marks a significant escalation in the ED’s scrutiny of financial dealings associated with the Formula E event.

Implications for the BRS Party

This is the second major money laundering case involving the family of former Telangana Chief Minister K Chandrashekar Rao (KCR). KTR’s sister, K Kavitha, was previously arrested and later released on bail in connection with the Delhi excise policy case. The current ED summons adds to the political and legal challenges faced by the BRS party.

The ongoing probe highlights increasing attention on financial transparency in large-scale government events and their associated expenses, with broader implications for Telangana’s political landscape.

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