BRS Leader KTR Summoned by ED in Formula-E Racing Case

Hyderabad: The Enforcement Directorate has summoned Bharat Rashtra Samithi leader KT Rama Rao and some others for questioning next month in a money laundering case linked to alleged payment irregularities during a Formula-E race held in Hyderabad in February 2023, official sources said on Saturday.

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

Bharat Rashtra Samithi (BRS) working president and son of former Telangana chief minister K Chandrashekhar Rao, Rama Rao has been asked to depose for recording of his statement on January 7, the sources said.

Senior IAS officer Arvind Kumar and retired bureaucrat and former Hyderabad Metropolitan Development Authority (HMDA) chief engineer BLN Reddy have been summoned on January 2 and January 3, respectively, they added.

The probe against 48-year-old Rama 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 (ED) is also probing possible foreign exchange violations in the case under the provisions of Foreign Exchange Management Act (FEMA), as per the sources.

Rama Rao had denied any wrongdoing, saying, "Where is the corruption in this? We have paid Rs 55 crore. They (Formula-E) acknowledged the payment." He added that it was a "straightforward" account.

"The HMDA has an account in Indian Overseas Bank and money has been transferred from that account..." he said while reacting to the ACB case.

Telangana Chief Minister A Revanth Reddy also attacked Rama 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.

Rama 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 recently granted permission to the ACB to register the case against Rama Rao.