ED summons KTR again on January 16 in Formula E race investigation

Hyderabad: The Enforcement Directorate (ED) has summoned K.T. Rama Rao (KTR), the working president of the Bharat Rashtra Samithi (BRS), to appear on January 16, 2025, in relation to the Formula E race case. This is the second time KTR has been called for questioning.

Senior IAS officer Arvind Kumar is scheduled to appear on January 9, 2025, while former Hyderabad Metropolitan Development Authority (HMDA) chief engineer B.L.N. Reddy has been summoned for January 8, 2025, in connection with the investigation.

The investigation is being conducted under the Prevention of Money Laundering Act (PMLA) after the Anti-Corruption Bureau (ACB) filed an FIR. The ED is also probing potential violations of the Foreign Exchange Management Act (FEMA), focusing on unauthorized fund transfers abroad.

The Enforcement Case Information Report (ECIR) mentions KTR, Arvind Kumar, and B.L.N. Reddy in relation to a ₹55 crore transfer from the Hyderabad Metropolitan Development Authority (HMDA) to Formula E Operations Limited (FEO) that occurred without the necessary approvals. This transfer was made despite the original agreement only specifying the government's responsibility for providing infrastructure for the race. Investigators are also looking into a ₹54.8 crore payment for the 2023 race and whether the financial commitments exceeding ₹600 crore for future seasons were legally authorized.

The ED registered the ECIR on December 20, 2024, following the ACB's FIR, filed a day earlier. The case centers on the ₹55 crore transfer for a second Formula E race in Hyderabad, which was canceled after the Congress government took office in December 2023. Both the ACB and ED are investigating possible financial mismanagement related to the transaction.

On December 12, 2024, Telangana Governor Jishnu Dev Varma approved the prosecution of KTR and Arvind Kumar, following consultations with the Attorney General. The state cabinet had earlier instructed Chief Secretary Santhi Kumari to initiate an investigation by the ACB.

KTR has denied the charges, calling them politically motivated. He has expressed willingness to face the charges in court and has called for a thorough investigation. The issue emerged when HMDA raised concerns about the legal basis of the payment to FEO. Chief Minister A. Revanth Reddy has maintained that the investigation is focused on alleged corruption, not political motives, and called for an inquiry into who benefited from the funds.

Meanwhile, today, on January 7, 2025, the Telangana High Court dismissed KTR’s petition to quash the FIR in the Formula E case, allowing the ACB to continue its investigation. The court also rejected KTR’s request for 10-day arrest protection.

In response, KTR said that his comeback would be stronger than the setback. He added that the lies, words, and actions aimed at diminishing or obstructing him would not succeed, and that today’s obstacles would give way to tomorrow’s triumph. He expressed confidence that truth would shine brighter with time, and reaffirmed his respect for the judiciary and belief in the eventual triumph of justice. KTR further stated that his fight for truth continues and that the world will soon witness it.