The Enforcement Directorate (ED) has summoned BRS leader and former Telangana minister KT Rama Rao in connection with alleged financial irregularities linked to the Formula E race held in Hyderabad in February 2023. Senior IAS officer Arvind Kumar and former Hyderabad Metropolitan Development Authority (HMDA) chief engineer BLN Reddy have also been summoned in the same case.
KTR has been summoned on January 7, while Mr Kumar and Mr Reddy are scheduled for questioning on January 2 and 3, respectively. The probe is being conducted following an FIR lodged by the Telangana Anti-Corruption Bureau (ACB).
The allegations centre on unauthorised financial transfers totalling Rs 55 crore from the HMDA to Formula E Operations Limited (FEO). Investigators allege that the funds were transferred without mandatory government approvals, despite the state's original agreement limiting its role to providing infrastructure and civic amenities for the event. Additional transfers of Rs 54.8 crore for the 2023 race are also under examination, along with a broader financial commitment exceeding Rs 600 crore for future races.
The Enforcement Case Information Report (ECIR) registered by the ED names KTR, Mr Kumar, and Mr Reddy as accused.
This is the second money laundering case implicating the family of former Telangana Chief Minister K Chandrashekar Rao. KTR's sister, K Kavitha, was previously arrested and later released on bail in the Delhi excise policy case. The ED's summons marks another political and legal challenge for the BRS party.
