The Enforcement Directorate (ED) has issued summons to BRS working president and former Telangana minister KT Rama Rao (KTR), senior IAS officer Arvind Kumar, and former Hyderabad Metropolitan Development Authority (HMDA) chief engineer BLN Reddy in connection with an ongoing investigation into alleged financial irregularities linked to the Formula-E race held in Hyderabad in February 2023. The investigation centers around an alleged misappropriation of Rs 55 crore used for hosting the high-profile motorsport event, which was a major international spectacle for the city.
KTR, who is the son of Telangana Chief Minister K Chandrashekhar Rao, has been asked to appear before the Enforcement Directorate on January 7. Meanwhile, Arvind Kumar and BLN Reddy are scheduled to appear on January 2 and 3, respectively. The summons followed the filing of a money laundering case by the central probe agency against KTR and the other accused in connection with the Formula-E event. The Enforcement Directorate's investigation comes after the Telangana Police Anti-Corruption Bureau (ACB) filed an FIR related to the alleged irregularities, prompting the ED to launch a parallel probe.
According to sources, the ED has registered an Enforcement Case Information Report (ECIR) under various sections of the Prevention of Money Laundering Act (PMLA) after reviewing the ACB FIR. The accused in the ED's case are the same as those named in the ACB complaint, with KTR listed as accused no. 1, followed by Arvind Kumar (accused no. 2) and retired bureaucrat BLN Reddy (accused no. 3). The allegations suggest that approximately Rs 55 crore, part of which was allegedly paid in foreign currency without the necessary approvals, was used to organize the Formula-E race in Hyderabad during the tenure of the previous government.
KTR has denied any involvement in financial misconduct and has defended the payments, claiming that they were entirely legitimate. In a public statement, he questioned, "Where is the corruption in this? We have paid Rs 55 crore. They (Formula-E organizers) acknowledged the payment." He further clarified that the funds were transferred from HMDA's account at Indian Overseas Bank, asserting that all transactions were conducted transparently and in accordance with the official process.
The investigation has attracted significant attention due to the involvement of high-profile individuals, particularly KTR, who is a key leader of the ruling party in Telangana and a prominent political figure in the region. The allegations have raised questions about the management of public funds for the event, which was hailed as a major achievement for the state's sporting and tourism sectors. The Formula-E race was intended to highlight Hyderabad as a global city capable of hosting major international events.
The case has drawn criticism from opposition parties, who have seized the opportunity to question the transparency of government dealings, particularly in handling public funds for large-scale events. The political ramifications of the investigation are expected to play out as the probe progresses, with the ruling party likely to face pressure to address the allegations.
As the ED continues its investigation, it is likely to examine the involvement of other officials and potential irregularities in the planning and execution of the event. The ACB's findings and the ongoing probe by the Enforcement Directorate are set to shed further light on the financial dealings surrounding the Formula-E race, which was widely publicized as a symbol of Hyderabad's growth and modernity.
With the summonses now issued and investigations ongoing, the case has become one of the most closely watched legal and political developments in Telangana. Both the Enforcement Directorate and Anti-Corruption Bureau will likely conduct further inquiries to uncover any irregularities, with potential consequences for the accused individuals depending on the findings of the investigation.
