Bharat Rashtra Samithi (BRS) working president KT Rama Rao appeared before the Enforcement Directorate (ED) Thursday for questioning in connection with an alleged money laundering case tied to the Formula E race event. The probe against Rao pertains to alleged irregularities in payments amounting to about Rs 55 crore, most of which were in foreign currency, in “violation of laid-down procedures” during the previous BRS regime, for the event planned for 2024.
Rao, who served as the municipal administration minister in the previous BRS-led government, called the decision to host the Formula E race in Hyderabad one of his most significant achievements as a minister.
“No amount of frivolous cases, cheap mudslinging, or political witch-hunting can erase that sense of accomplishment,” Rao wrote on social media platform X ahead of his appearance. The BRS leader has denied any wrongdoing, accusing the ruling Congress government in Telangana of using courts and investigative agencies to pursue politically motivated cases.
Rao, popularly known as KTR, was initially summoned to appear before the ED on January 7 but requested a two-week extension. He arrived at the ED office in Hyderabad at 10:30 AM on January 16, where police had deployed extensive security measures.
The probe by the federal agency is linked to alleged irregularities in payments for the proposed Formula-E race event to be held in Hyderabad in 2024.
The ED registered an Enforcement Case Information Report (ECIR) under the Prevention of Money Laundering Act (PMLA) after reviewing a complaint from the Telangana Anti-Corruption Bureau (ACB). Senior bureaucrats, including IAS officer Arvind Kumar and former Hyderabad Metropolitan Development Authority (HMDA) chief engineer BLN Reddy, have also been questioned by the agency in connection with the case.
In a statement, Rao defended the payments, saying Rs 46 crore was paid to Formula E Operations Limited (FEO) via transparent bank transactions and that every rupee was accounted for. He denied any misappropriation of funds and criticised Telangana Chief Minister Revanth Reddy for cancelling the 2024 event after the Congress government assumed power in December 2023.
The Formula E race was held in Hyderabad in February 2023, marking a milestone for the city. However, plans for the 2024 race were abandoned by the Congress government after it took office.
The ACB filed a case in December 2024 against Rao, Arvind Kumar, and retired HMDA chief engineer B.L.N. Reddy under sections of the Prevention of Corruption Act and the Indian Penal Code.
The FIR was filed under relevant sections of the Prevention of Corruption Act and the IPC, dealing with criminal misappropriation, criminal misconduct, criminal breach of trust, and criminal conspiracy. These alleged actions resulted in a loss to the government exchequer to the tune of about Rs 55 crore.
Rao previously appeared before the ED on January 9 for questioning.
(With PTI inputs)