ED summons KTR, Arvind Kumar, & BLN Reddy in Formula E race case
Hyderabad: The Enforcement Directorate (ED) has summoned K.T. Rama Rao (KTR), working president of the Bharat Rashtra Samithi (BRS), along with senior IAS officer Arvind Kumar and former Hyderabad Metropolitan Development Authority (HMDA) chief engineer B.L.N. Reddy, in connection with the Formula E race case.
KTR has been asked to appear on January 7, while Arvind Kumar and BLN Reddy are scheduled for January 2 and 3, respectively. The investigation is being conducted under the Prevention of Money Laundering Act (PMLA), following an FIR filed by the Anti-Corruption Bureau (ACB).
Formula E Race Case: ED Summons KTR, Arvind Kumar, and BLN Reddy
The Enforcement Directorate (ED) has summoned BRS working president KT Rama Rao (KTR), senior IAS officer Arvind Kumar, and former HMDA chief engineer BLN Reddy in the Formula E race case. KTR is to appear on… pic.twitter.com/UWs3OP7XMa
— Hyderabad Mail (@Hyderabad_Mail) December 28, 2024
The ED is also investigating the case under the Foreign Exchange Management Act (FEMA) for potential violations, including unauthorized fund transfers abroad.
The Enforcement Case Information Report (ECIR) names KTR, Arvind Kumar, and BLN Reddy in connection with the alleged transfer of ₹55 crore from HMDA to Formula E Operations Limited (FEO) without the necessary approvals.
The original agreement outlined the government’s role in providing infrastructure for the race, but investigators claim HMDA transferred funds despite not being a direct party to the agreement. The ED is also looking into the ₹54.8 crore transferred for the 2023 race and whether financial commitments exceeding ₹600 crore for future seasons followed legal protocols.
On December 20, 2024, the ED registered the ECIR under PMLA, following an FIR by the ACB on December 19, 2024. KTR, Arvind Kumar, and BLN Reddy are named in the FIR.
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 linked 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 instructed Chief Secretary Santhi Kumari to begin an investigation by the ACB.
KTR has denied the charges, calling them politically motivated. He has said he is ready to face the charges in court and has called for a thorough investigation.
The issue surfaced when HMDA raised concerns about the payment to FEO, questioning the legal basis of the transfer. Chief Minister A. Revanth Reddy has said the investigation is focused on alleged corruption, not political motives, and called for an inquiry into who benefited from the funds.
