Telangana IAS Officer Arvind Kumar Appears Before ED in Formula-E Case

Hyderabad: Arvind Kumar, the former Special Chief Secretary of the Municipal Administration & Urban Development Department in Telangana, appeared before the Enforcement Directorate (ED) on Thursday in connection with the alleged financial irregularities surrounding the Formula-E race.

Kumar is being questioned alongside K. T. Rama Rao (KTR), the working president of the Bharat Rashtra Samithi (BRS), in a case involving the transfer of substantial funds without adhering to proper financial protocols.

Arvind Kumar’s Appearance at the ED Office:

Kumar, a senior Indian Administrative Service (IAS) officer, reached the ED regional office around 11 a.m. on Thursday to face questioning in relation to the alleged money laundering activities connected to the Formula-E event held in Hyderabad. The probe is being conducted under the Prevention of Money Laundering Act (PMLA), and the ED is investigating possible violations of the Foreign Exchange Management Act (FEMA) based on the First Information Report (FIR) filed by the Anti-Corruption Bureau (ACB).

ED’s Investigation into Alleged Financial Irregularities:

The ED‘s ongoing investigation centers around allegations that senior officials from the Hyderabad Metropolitan Development Authority (HMDA), including Arvind Kumar and B.L.N. Reddy, former chief engineer of HMDA, were involved in illegal financial transactions tied to the Formula-E race.

On January 8, B.L.N. Reddy appeared before the ED for an extensive nine-hour questioning. According to reports, Reddy was questioned about the transfer of approximately Rs. 55 crore to Formula-E Operations (FEO), a UK-based entity responsible for organizing the Formula-E race. The transfer was allegedly made in violation of FEMA and PMLA provisions. Reddy was also asked why no prior clearance was sought from the Reserve Bank of India (RBI) for the transfer of foreign funds.

Key Questions for Arvind Kumar:

Arvind Kumar’s questioning is expected to revolve around the statements given by Reddy, who reportedly claimed that he acted on orders from Kumar in the handling of the financial transactions related to the Formula-E event. The ED will likely probe Kumar’s role in approving the transfers and the lack of adherence to financial protocols.

Also Read | KTR Ready to Face Legal Battles Over Formula-E Case: Denies Corruption Allegations

ACB’s Role in the Investigation:

In addition to the ED, the ACB has also been actively involved in the investigation. The ACB had filed an FIR against K. T. Rama Rao, Arvind Kumar, and Reddy last month for their alleged involvement in irregular payments made by HMDA to Formula-E Operations and its associated entities. The FIR was registered under Sections 13 (1) (A) and 13 (2) of the Prevention of Corruption Act, as well as Sections 409 and 120 (B) of the Indian Penal Code (IPC), which deal with criminal breach of trust and criminal conspiracy.

Kumar had already appeared before the ACB on January 7, where he was questioned for about six hours. K.T. Rama Rao, the former Telangana Minister and BRS leader, who is named as the primary accused in the case, appeared before the ACB on Thursday. He is scheduled to face questioning by the ED on January 16, after seeking additional time to comply with the notice.

Legal Proceedings and Developments:

The ED‘s probe into the Formula-E case is part of a broader investigation into the financial transactions related to the Formula-E race held in Hyderabad. The event, which was brought to the city under the leadership of K. T. Rama Rao, has been surrounded by controversy due to the allegedly improper financial dealings surrounding the payments made to Formula-E organizers.

Kumar’s appearance before the ED is just one part of a larger legal process that is expected to continue in the coming weeks. The ED and ACB are working together to uncover the full extent of the financial irregularities that allegedly occurred during the handling of funds for the event.

Political Implications:

The ongoing investigation has not only raised questions about the legality of the financial transactions but has also become a point of contention in Telangana’s political landscape. The Bharat Rashtra Samithi (BRS) and its leadership, including K.T. Rama Rao, have faced criticism from opposition parties, with accusations of corruption and financial mismanagement.

However, KTR has denied all allegations, asserting that his efforts were aimed at making Hyderabad a hub for electric mobility and sustainable transportation.

Future Developments:

The case continues to unfold, with significant political and legal ramifications. As K.T. Rama Rao is set to appear before the ED on January 16, all eyes will be on the investigation’s progress and the potential legal consequences for those involved in the alleged irregularities