ED starts money laundering probe against K T Rama Rao in Formula-E race case 

The Enforcement Directorate has initiated a money laundering investigation against BRS leader K T Rama Rao and others for suspected payment irregularities during the Formula-E race in Hyderabad in February 2023.

An Enforcement Case Information Report (ECIR) has been filed under relevant sections of the Prevention of Money Laundering Act (PMLA) based on a FIR filed by the Telangana Police Anti-corruption bureau. This information was shared by official sources with news agency PTI. 

In the ongoing investigation, BRS leader K T Rama Rao, son of former state chief minister K Chandrashekhar Rao, has been identified as accused number 1, with senior IAS officer Arvind Kumar and retired bureaucrat BLN Reddy being named as accused numbers 2 and 3, respectively.

The case involves purported payments totaling around Rs 55 crore, including some in foreign currency that were allegedly made without proper approvals, for the organization of a Formula-E race in Hyderabad during the previous administration in February of the preceding year.

This happened shortly after being instructed by the Telangana High Court, the Anti-Corruption Bureau (ACB) officials refrained from arresting the BRS leader until December 30 in the same case.

KTR, on his part, denied wrongdoing, and added: "Where is corruption in this? We have paid Rs 55 crore. They (Formula-E) acknowledged the payment."

KTR filed a petition in court to have the FIR against him dismissed. His legal counsel, CS Sundaram, contended that the case was politically driven and lacked substantial proof of criminal wrongdoing. Sundaram argued that the government's actions during the Formula E event were in the interest of protecting it, and that the main accusation against KTR was a minor procedural error, not corruption.

The Anti-Corruption Bureau of Telangana has initiated legal action against BRS working president and MLA Rama Rao for suspected irregular payments, including some made in foreign currency without proper authorizations. These payments were allegedly intended for organizing a Formula-E race in Hyderabad during the previous administration.

Earlier in the year, the government had requested an explanation from Arvind Kumar regarding his signature on an agreement related to the Formula-E race, purportedly without proper approval from the appropriate authority and also for making a payment of Rs 55 crore, a majority of which was in foreign currency.

Subsequently, Formula-E declared the cancellation of the Hyderabad E-Prix, citing a breach of contract by the new Telangana government. The second Formula-E Race in India was scheduled to take place on February 10.