Formula E Race Case: ED Summons KT Rama Rao on January 7 in Connection With Case Related to Alleged Irregularities in Conducting Formula Race
The central agency has asked K.T. Rama Rao to appear before it on January 7, while Arvind Kumar and Reddy have been directed to appear on January 2 and 3, respectively.
Hyderabad, December 28: The Enforcement Directorate (ED) has summoned BRS working president and former minister, K.T. Rama Rao, senior IAS officer Arvind Kumar and former Hyderabad Metropolitan Development Authority (HMDA) chief engineer B.L.N. Reddy in connection with the case related to the alleged financial irregularities in conducting the Formula-E race when the BRS was in power. The central agency has asked K.T. Rama Rao to appear before it on January 7, while Arvind Kumar and Reddy have been directed to appear on January 2 and 3, respectively.
The ED is conducting the probe under the Prevention of Money Laundering Act (PMLA), based on an FIR filed by the Anti-Corruption Bureau (ACB). The agency had also initiated a parallel investigation under the Foreign Exchange Management Act (FEMA) to examine possible violations. The ACB on December 29 booked a case against K.T. Rama Rao, senior IAS officer Arvind Kumar and HMDA former chief engineer Reddy for alleged irregularities in organising the Formula E-car race last year. Formula-E Race Case: Telangana HC Adjourns Hearing on K T Rama Rao's FIR Quash Plea.
The First Information Report (FIR) was registered under various sections of the Prevention of Corruption Act on allegations of financial irregularities in conducting the Formula-E race when BRS was in power. The FIR was registered on a complaint by M. Dana Kishore, Principal Secretary, Municipal Administration and Urban Development. This followed permission given by Governor Jishnu Dev Varma at a request by the state government.
The ACB registered the FIR under Sections 13(1)(A) and 13(2) of the Prevention of Corruption Act, along with Sections 409 and 120(B) of the Indian Penal Code. The complainant alleged that payment of over Rs.54.88 crore was made to UK-based Formula-E Operations Limited (FEO) and others in “gross violation of established procedures”. A day after the ACB registered the FIR, the Enforcement Directorate also registered an Enforcement Case Information Report (ECIR) under the PMLA, against K.T. Rama Rao, Arvind Kumar and Reddy. Formula E Race Case: Days After Telangana Cabinet Gives Nod to ACB To Initiate Action Against KT Rama Rao, BRS Leader Says ‘Ready To Face It Legally’.
As per the original agreement, the government’s role was limited to providing infrastructure and civic amenities for the race. However, there are allegations that HMDA transferred funds despite not being a direct party to the agreement. The ED is also probing whether financial commitments exceeding Rs 600 crore for upcoming seasons violated legal and financial protocols.
(The above story first appeared on LatestLY on Dec 28, 2024 10:58 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).