ED registers PMLA case against KTR & others over Formula E Race controversy
Hyderabad: The Enforcement Directorate (ED) has registered an Enforcement Case Information Report (ECIR) under the Prevention of Money Laundering Act (PMLA) against K.T. Rama Rao (KTR), the former minister and current working president of the Bharat Rashtra Samithi (BRS), in connection with the Formula E race held in Hyderabad in February 2023. The case also names other officials involved in the matter.
This development follows the filing of a First Information Report (FIR) by the Anti-Corruption Bureau (ACB) on December 19, 2024, which names KTR as the first accused. The FIR also names former Municipal Administration Special Chief Secretary Arvind Kumar as the second accused and HMDA Chief Engineer B.L.N. Reddy as the third.
The investigation revolves around the alleged unauthorized transfer of ₹55 crore from the Hyderabad Metropolitan Development Authority (HMDA) to Formula E Operations (FEO) without necessary approvals.
The FIR alleges that ₹55 crore, initially intended for a second Formula E race in Hyderabad, was transferred under KTR’s direction. However, the event was canceled after the Congress government assumed office in December 2023. Both the ACB and ED are investigating claims of financial mismanagement related to this 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 then instructed Chief Secretary Santhi Kumari to begin an investigation by the ACB.
KTR has denied all allegations, calling them politically motivated, and said he is prepared to face the charges in court. He has challenged the Congress government to conduct a thorough investigation.
The controversy first arose when HMDA raised concerns about the payment to FEO, questioning the legal and contractual basis for the transaction. Chief Minister A. Revanth Reddy has highlighted that the investigation is focused on alleged corruption, not political motives, and called for an inquiry into who benefited from the misused funds.
