The Enforcement Directorate is investigating possible violations of the Foreign Exchange Regulation Act (FEMA) regarding the ₹54.8 crore released to UK-based Formula E Operations for the Hyderabad E-Prix, bypassing required clearances from key authorities
Published Dec 28, 2024 | 11:53 AM ⚊ Updated Dec 28, 2024 | 11:53 AM
ED summons KTR for questioning in Formula E race case on 7 January
The Enforcement Directorate has served a notice to former Municipal Administration and Urban Development (MAUD) Minister and BRS working president KT Rama Rao to appear before them on 7 January. The summons are in connection with financial irregularities that are alleged to have taken place for the conduct of the Formula E Race in Hyderabad.
The central probe agency has also summoned Arvind Kumar, the former Principal Secretary of MAUD and then HMDA Commissioner, along with ex-HMDA Chief Engineer BLN Reddy, to appear before them on January 2 and 3, respectively.
The Enforcement Directorate is investigating potential violations of the Foreign Exchange Regulation Act (FEMA) regarding the ₹54.8 crore released last year to UK-based Formula E Operations for the Hyderabad E-Prix, without obtaining necessary clearances from the Finance Department, state cabinet, and Reserve Bank of India, as the payment was made in foreign exchange.
The Enforcement Directorate (ED) registered an Enforcement Case Information Report (ECIR) on Friday, 20 December, a day after the Anti-Corruption Bureau (ACB) filed an FIR naming KTR, Arvind Kumar, and BLN Reddy as accused No. 1, 2, and 3. While KTR is challenging the FIR in the Telangana High Court, the ED has issued notices to him and the other two officials, escalating the legal complications. The ED’s case, filed under the Prevention of Money Laundering Act (PMLA), is based on the ACB’s FIR, which accuses the trio of approving the expenditure of ₹600 crore in state funds for future editions of the Formula E Race.
During the hearing of KTR’s petition to quash the ACB’s FIR, the ACB argued in the Telangana High Court that KTR had committed a financial irregularity by directing the transfer of funds without Finance Department clearance. The ACB contended that KTR’s petition was not maintainable due to misuse of public funds. The High Court adjourned the hearing to 31 December, while extending KTR’s relief from arrest until that date.
.(Edited by Ananya Rao)
