Formula E case: KTR challenges CM Revanth Reddy to take lie detector test

Hyderabad: K.T. Rama Rao (KTR), Working President of the Bharat Rashtra Samithi (BRS) and former Minister, was questioned for seven hours by the Enforcement Directorate (ED) on January 16, 2025, in connection with the ongoing investigation into the Formula E race.

After his questioning, KTR addressed the media, criticizing Telangana Chief Minister Revanth Reddy, who is also a Congress leader. KTR alleged that Revanth Reddy was using the cases involving the ED and ACB for political vendetta and challenged him to take a lie detector test to clarify the facts.

"I will cooperate fully with the investigation," KTR said. "I will answer all questions and prove my integrity, as a person who respects the Constitution and the judicial system." He reiterated his commitment to face the investigation and the charges.

Earlier in the morning, KTR arrived at the ED office in Basheerbagh under heavy security, with around 200 police personnel stationed nearby.

The ED is investigating potential violations of the Prevention of Money Laundering Act (PMLA) and the Foreign Exchange Management Act (FEMA), specifically focusing on unauthorized fund transfers abroad. The investigation concerns a ₹55 crore transfer from the Hyderabad Metropolitan Development Authority (HMDA) to Formula E Operations Limited (FEO), which took place without proper approvals. The original agreement only authorized the government to provide infrastructure for the event.

Senior IAS officer Arvind Kumar and former HMDA chief engineer B.L.N. Reddy have also been questioned in relation to the case.

KTR’s questioning follows a recent Supreme Court decision on January 15, 2025, which dismissed his petition to quash an FIR filed by the Anti-Corruption Bureau (ACB) regarding the alleged misappropriation of funds in the Formula E case. The court upheld the Telangana High Court’s decision, rejecting KTR’s plea to quash the criminal case.

The investigation, initiated by the ACB, focuses on a ₹55 crore transfer from the HMDA to FEO for a second Formula E race in Hyderabad, which was canceled after the Congress government assumed office in December 2023. Both the ACB and ED are looking into potential financial mismanagement tied to this transaction.

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

KTR has denied all charges, calling them politically motivated, and has expressed his readiness to face the charges in court. Chief Minister A. Revanth Reddy has maintained that the investigation is focused on alleged corruption, not political motivations.