BRS Leader KTR Seeks Time from ED Amid Formula-E Race Irregularities Probe

Hyderabad: BRS leader K T Rama Rao, who has been summoned by the ED to appear on January 7 for questioning in a case linked to alleged irregularities with regard to conducting a Formula-E race in Hyderabad, sought time, party sources said on Monday.

While seeking time, Rao pointed out that the High Court is likely to give its verdict in a petition filed by him to quash the FIR, the sources said.

The High Court is expected to pronounce its verdict on Tuesday.

The Enforcement Directorate had summoned the Bharat Rashtra Samithi working president for questioning on January 7 in a money laundering case linked to alleged payment irregularities during a Formula-E race held in Hyderabad in February 2023.

The federal agency filed an enforcement case information report (ECIR) or FIR in December, 2024 in the case under various sections of Prevention of Money Laundering Act (PMLA), taking cognisance of a Telangana Police Anti-corruption Bureau (ACB) complaint.

Rama Rao, son of former Telangana chief minister K Chandrasekhar Rao, has been asked to depose for recording of his statement on January 7.

The probe against 48-year-old Rao, popular as KTR, pertains to alleged payments of about Rs 55 crore, some of it in foreign currency without approvals, to conduct a Formula-E race in Hyderabad during the previous BRS regime in February 2023.

The Enforcement Directorate is also probing possible foreign exchange violations in the case under the provisions of Foreign Exchange Management Act (FEMA), as per the sources.

Rao had denied any wrongdoing, saying, "Where is the corruption in this? We have paid Rs 55 crore. They (Formula-E) acknowledged the payment." Telangana Chief Minister A Revanth Reddy also attacked Rao for the alleged irregularities, saying about Rs 500 crore was saved with the state government under him deciding against further transfer of funds to the organisers of the racing event.

Rao, who was the municipal administration minister in the BRS regime, was instrumental in hosting the race in Hyderabad last year.

Though the race was supposed to be held in February this year as well, it was cancelled after the Congress government assumed office in December 2023.

Telangana Governor Jishnu Dev Varma had granted permission to the ACB to register the case against Rao.