New Year jolt to KTR; ED to grill on Jan 7

Hyderabad: The Enforcement Directorate (ED) has summoned BRS working president and former minister KT Rama Rao to appear before it on January 7 in connection with the Formula E race case. Former MAUD Secretary Arvind Kumar and HMDA Chief Engineer BLN Reddy, who are also accused of financial irregularities in conducting the Formula race, will appear before the ED on January 2 and 3 respectively.

BRS leaders said they would legally challenge the case. B Vinod Kumar on Saturday said the case registered by the ED against KTR, alleging payment irregularities and corruption in conducting Formula-E race in Hyderabad in 2023, did not fall under the purview of Prevention of Money Laundering Act (PMLA).

The federal agency registered an enforcement case information report (ECIR) or FIR last week in the case under various sections of the PMLA, taking cognisance of a complaint by Telangana Anti-Corruption Bureau. It is also investigating if the financial commitments exceeding Rs 600 crore for the upcoming seasons violate legal and financial protocols.

The role of KTR in the release of funds and the violation of guidelines in the release of Rs 55 crore to the organisers is being probed in detail. The statements of the two state government officials would be crucial to chargesheet KTR. The ED would record the statements of Arvind Kumar and BLN Reddy and seek KTR’s response on the same at the time of questioning.

KTR, who as the municipal administration minister was instrumental in hosting the race in Hyderabad last year, strongly denied the charges. Though the race was supposed to be held in February this year as well, it was cancelled after the Congress government assumed office in December 2023. Governor Jishnu Dev Varma recently granted permission to the ACB to register the case against KTR.