KTR to face ED questioning today over Formula E financial probe
Hyderabad: K.T. Rama Rao (KTR), the working president of Bharat Rashtra Samithi (BRS), is set to appear before the Enforcement Directorate (ED) today, January 16, 2025, in connection with the Formula E race case. This is the second time KTR has been summoned for questioning.
The investigation is being conducted under the Prevention of Money Laundering Act (PMLA), following an FIR filed by the Anti-Corruption Bureau (ACB). The ED is also probing possible violations of the Foreign Exchange Management Act (FEMA), focusing on unauthorized fund transfers abroad.
According to the Enforcement Case Information Report (ECIR), KTR, Arvind Kumar, and B.L.N. Reddy are linked to a ₹55 crore transfer from the Hyderabad Metropolitan Development Authority (HMDA) to Formula E Operations Limited (FEO). This transfer occurred without necessary approvals, despite the original agreement stating that the government’s role was limited to providing infrastructure for the race. Investigators are also examining a ₹54.8 crore payment for the 2023 race and whether financial commitments exceeding ₹600 crore for future seasons were legally authorized.
Senior IAS officer Arvind Kumar appeared before the ED on January 9, 2025, while former HMDA chief engineer B.L.N. Reddy was questioned on January 8, 2025.
Supreme Court Denies Relief to KTR
On January 15, 2025, the Supreme Court dismissed a petition filed by KTR seeking to quash the FIR filed by the ACB over the alleged misappropriation of funds in the Formula E case. The Court refused to stay the Telangana High Court’s earlier order, which had rejected KTR’s plea to quash the FIR.
KTR’s counsel withdrew the petition, and the Supreme Court did not intervene further in the case. The Telangana High Court had earlier dismissed KTR’s request to quash the criminal case registered by the ACB, which accuses him of fund mismanagement related to the Formula E event.
The ED registered the ECIR on December 20, 2024, after the ACB filed its FIR a day earlier. The investigation centers on a ₹55 crore transfer 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 examining possible financial mismanagement connected to the transaction.
Governor Approves Prosecution
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 his willingness to face the charges in court and called for a thorough investigation. The issue came to light 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 has called for an inquiry into who benefited from the funds.
KTR's Response
On January 7, 2025, the Telangana High Court dismissed KTR’s petition to quash the FIR, allowing the ACB to continue its investigation. The court also rejected his request for 10-day arrest protection.
KTR responded by stating that his comeback would be stronger than the setback. He highlighted that attempts to undermine him would not succeed and expressed confidence that the truth would eventually prevail. He reaffirmed his respect for the judiciary and his belief in the eventual triumph of justice.
