ED summons KTR in money laundering case

The Enforcement Directorate has summoned Bharat Rashtra Samithi (BRS) leader KT Rama Rao (KTR) and some others for questioning next month in a money laundering case linked to alleged payment irregularities during a Formula-E race held in Hyderabad in February 2023, sources said on Saturday.

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Taking cognisance of a Telangana Police Anti-corruption Bureau (ACB) complaint, the federal agency filed an enforcement case information report (ECIR) last week in the case under various sections of the Prevention of Money Laundering Act (PMLA).

KT Rama Rao, BRS working president and son of former Telangana CM K Chandrashekhar Rao, has been asked to depose for recording of his statement on January 7, the sources said.

Senior IAS officer Arvind Kumar and former Hyderabad Metropolitan Development Authority (HMDA) chief engineer BLN Reddy have been summoned on January 2 and January 3, respectively, they added. The probe against Rao pertains to alleged payments of about Rs 55 crore, some of it in foreign currency without approvals, to conduct a Formula-E race in Hyderabad during the previous BRS regime in February 2023. The ED is also probing possible foreign exchange violations in the case, the sources said.

Denying any wrongdoing, Rama Rao said, “We have paid Rs 55 crore. They (Formula-E) acknowledged the payment. Where is corruption in this?”

“The HMDA has an account in Indian Overseas Bank and money has been transferred from that account...” he said, while reacting to the ACB case.

Telangana Governor Jishnu Dev Varma had recently granted permission to the ACB to register the case against Rama Rao. CM A Revanth Reddy also attacked Rama Rao for the alleged irregularities, saying about Rs 500 crore was saved with the state government under him deciding against further transfer of funds to the organisers of the racing event.

Rama Rao, who was the municipal administration minister in the BRS regime, was instrumental in hosting the race. Though the race was supposed to be held in February this year as well, it was cancelled off after the Congress government assumed office in December 2023.