BRS Leader K.T. Rama Rao Appears Before ED in Money Laundering Probe Linked to Formula-E Race

Hyderabad: K.T. Rama Rao, the working president of the BRS (Bharat Rashtra Samithi) and former Municipal Administration Minister, appeared before the Enforcement Directorate (ED) in Hyderabad on January 16, 2025, for questioning in a money laundering case related to the upcoming Formula-E race event in the city.

Case Background and Controversy

KTR, as the BRS leader is popularly known, is under investigation by the ED over alleged irregularities in payments made for the Formula-E race event slated for 2024 in Hyderabad.

The investigation follows an Enforcement Case Information Report (ECIR) filed by the ED after the Telangana Anti-Corruption Bureau (ACB) complained about financial discrepancies amounting to around Rs 55 crore, much of which was paid in foreign currency.

The probe involves claims of violations of prescribed financial procedures during the previous BRS regime.

Before his appearance at the ED office, KTR took to X (formerly Twitter), asserting his innocence and criticizing what he called the political vendetta and malice behind the case.

“No number of frivolous cases, cheap mudslinging, or political witch-hunting can erase that sense of accomplishment,” he posted, referring to the Formula-E race that he considers one of his most cherished decisions as a former minister.

Allegations and Clarifications

The ED’s investigation concerns the payments made to Formula E Operations Limited (FEO), the organization overseeing the Formula-E race, which was initially planned for February 2024 in Hyderabad.

KTR responded to the allegations, stating that Rs 46 crore was paid through transparent bank-to-bank transactions, and insisted that every single rupee was accounted for, rejecting any claims of misappropriation or corruption.

Despite the allegations, KTR refuted any wrongdoing and took a swipe at Telangana Chief Minister K. Revanth Reddy, claiming that the cancellation of the second year of the event, a decision made by the new Congress government, had resulted in a loss to the state’s exchequer.

He questioned, “Where is the alleged corruption, misappropriation, or money laundering?”

Also Read | Telangana: BRS Turns into B-RSS: CM Revanth Reddy

Security and Public Support

As KTR arrived at the ED office at 10:30 am, elaborate security arrangements were put in place by the local police. A large number of BRS leaders and workers gathered to show support for the party leader but were later dispersed by police.

KTR’s appearance before the ED is part of a broader investigation into the Formula-E race and the financial dealings associated with it.

The ACB has been investigating alleged corruption linked to the event, and senior officials, including Arvind Kumar, a senior IAS officer, and B.L. N. Reddy, the former Chief Engineer of the Hyderabad Metropolitan Development Authority (HMDA), have already been questioned in connection with the case.

Political Context and Allegations of Political Vendetta

The Formula-E race was held in Hyderabad in February 2023 as part of the 2023 calendar but was initially planned to be a recurring event.

However, after the Congress party assumed power in December 2023, the race for 2024 was cancelled. This cancellation has become a point of contention, with KTR and the BRS party blaming the state government for the loss in potential revenue and job creation opportunities that the event could have brought to the state.

The cancellation also led to political accusations of political vendetta by the ruling government, with KTR asserting that the case is an example of political witch-hunting meant to undermine his contributions.

Ongoing Investigation and Legal Proceedings

The ED’s investigation is part of a larger inquiry into the Formula-E race case, which involves complex financial transactions and the allocation of government funds.

In addition to KTR, the ACB has named senior officials such as Arvind Kumar and B.L. Reddy as part of the probe, which is examining allegations of criminal misappropriation, criminal misconduct, and criminal conspiracy under the Prevention of Money Laundering Act (PMLA) and other relevant sections of the Indian Penal Code (IPC).

The Telangana Anti-Corruption Bureau (ACB) had initially registered a case in December 2024, pointing out a loss to the exchequer of approximately Rs 55 crore due to the alleged mismanagement of funds meant for the Formula-E race.

Future of Formula-E in Hyderabad

The future of the Formula-E race in Hyderabad now hangs in the balance. The race, which was heralded as a major step forward for Hyderabad’s image as a growing hub for international sporting events, could see a disruption in its continuity due to the ongoing legal and political disputes.

KTR has expressed confidence that the truth will eventually come out and reiterated his commitment to fighting for justice. He remains hopeful that the courts will clear the air on the matter and that the investigation will reveal that no wrongdoing occurred.