The Enforcement Directorate (ED) was preparing to register an Enforcement Case Information Report (ECIR) under the Prevention of Money Laundering Act (PMLA) against former minister KT Rama Rao (KTR) and others over alleged financial irregularities linked to the Formula E race held in Hyderabad in February 2023.
This comes after the Telangana Anti-Corruption Bureau (ACB) registered a First Information Report (FIR) against KTR and others in the Formula E funding case.
Sources in the ED confirmed the plans that it will request the ACB’s FIR. The ED clarified that an ECIR would be registered irrespective of ACB’s FIR.
According to the source, the investigating agency would also look into potential violations of the Foreign Exchange Management Act (FEMA).
The ACB, in its FIR, alleged that Rs 55 crore, meant for a second Formula E race in Hyderabad, was transferred under KTR’s direction. However, the event was cancelled after the Congress government took office in December 2023.
Both the ACB and ED are now investigating allegations of financial mismanagement and misuse of funds in the matter.
On December 12, 2024, Telangana Governor Jishnu Dev Varma approved the prosecution of KTR and former Municipal Administration Special Chief Secretary Arvind Kumar, and other officials, after consulting with the Attorney General. The state cabinet subsequently instructed Chief Secretary Santhi Kumari to initiate an ACB investigation into the allegations.
KTR has denied any wrongdoing, claiming the allegations are politically motivated. He has expressed readiness to face the investigation and challenged the Congress government to proceed.
The controversy began when the Hyderabad Metropolitan Development Authority flagged concerns over a payment to Formula E Operations, citing a lack of legal and contractual basis for the transaction. Chief Minister A Revanth Reddy emphasised that the investigation targets alleged corruption, not political motives, and called for clarity on who benefited from the funds.
