https://hyderabadmail.com/ed-register-money-laundering-case-ktr-formula-e-funds/

Hyderabad: The Enforcement Directorate(ED) is set to submit an Enforcement Case Information Report (ECIR) under the Prevention of Money Laundering Act(PMLA) targeting K.T. Rama Rao(KTR), the former minister and current working president of the Bharat Rashtra Samithi(BRS), along with others. This action is related to accusations of financial mismanagement associated with the Formula E race that took place in Hyderabad in February 2023.

This development comes after the Anti-Corruption Bureau(ACB) filed a First Information Report(FIR) on Thursday. The FIR names KTR as Accused No.1, followed by other officials, former Municipal Administration Special Chief Secretary Arvind Kumar as Accused No.2, and HMDA Chief Engineer B.L.N.Reddy as Accused No.3.

The investigation centers on the alleged unauthorized transfer of 55 crore from the Hyderabad Metropolitan Development Authority(HMDA) to Formula E Operations(FEO) without the necessary approvals.

An Enforcement Directorate(ED) source confirmed that plans are in place to request the FIR from the ACB.

However, it was also stated that the ECIR will be registered even if the FIR is obtained through alternative channels."We will initiate a case under the PMLA and will also examine any potential violations of the Foreign Exchange Management Act(FEMA), if necessary,"the source said.

The FIR filed by the ACB states that 55 crore, intended for a second Formula E race in Hyderabad, was transferred under KTR's direction. However, the event was ultimately canceled after the Congress government assumed office in December 2023. Both the ACB and the ED are now investigating claims of financial mismanagement and misuse of funds related to this matter.

On December 12,2024, the Governor of Telangana, Jishnu Dev Varma, approved the prosecution of KTR and Arvind Kumar following a discussion with the Attorney General. Later, the state cabinet directed Chief Secretary Santhi Kumari to commence an investigation by the Anti-Corruption Bureau regarding the allegations.

KTR has denied any wrongdoing and is prepared to face the allegations legally. He dismissed the charges as being politically motivated and challenged the Congress government to conduct the investigation.

The controversy began when HMDA raised concerns about the payment to FEO, arguing that the transaction lacked legal and contractual basis. Chief Minister A. Revanth Reddy highlighted that the focus of the investigation is on alleged corruption, not political motives, and called for an inquiry into who benefited from the funds.