The Enforcement Directorate has summoned BRS leader KTR for questioning in a money laundering case related to alleged payment irregularities during the Formula-E race in Hyderabad in 2023.
Hyderabad: The Enforcement Directorate (ED) has summoned Bharat Rashtra Samithi (BRS) leader KT Rama Rao (KTR) for questioning on January 7 in connection with a money laundering investigation related to alleged financial irregularities during the Formula-E race held in Hyderabad in February 2023.
The ED‘s case stems from a complaint by Telangana’s Anti-Corruption Bureau (ACB), which raised concerns over payments totalling approximately ₹55 crores, some of which were made in foreign currency without the necessary approvals. The federal agency has filed an Enforcement Case Information Report (ECIR) under the Prevention of Money Laundering Act (PMLA).
In addition to KTR, senior IAS officer Arvind Kumar and retired bureaucrat BLN Reddy have been summoned for questioning on January 2 and January 3, respectively.
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The investigation also explores potential violations under the Foreign Exchange Management Act (FEMA). KTR has denied any wrongdoing, defending the payments as legitimate and acknowledging that Formula-E organizers accepted the funds. He further clarified that the funds were transferred from an official account of the Hyderabad Metropolitan Development Authority (HMDA).
Telangana’s Chief Minister, A Revanth Reddy, has criticized the financial dealings surrounding the race, claiming that the state government saved ₹500 crore by halting additional payments to organizers.
KTR, the municipal administration minister during the BRS regime, played a key role in bringing the race to Hyderabad. The event was cancelled after the Congress government came to power in December 2023. The case was authorised by Telangana Governor Jishnu Dev Varma, allowing the ACB to proceed with the investigation.
