Telangana: ED Books KTR In Formula-E Race Linked Money Laundering Case

The Enforcement Directorate on Friday filed a money laundering case against BRS leader K T Rama Rao and some others in a case linked to alleged payment irregularities during the Formula-E race held in Hyderabad in February 2023, official sources said.

An Enforcement Case Information Report (ECIR) has been registered under various sections of the Prevention of Money Laundering Act (PMLA) taking cognisance of a Telangana Police Anti-corruption bureau FIR filed on Thursday, the sources said.

The accused in the ED case are the same as those mentioned in the ACB FIR, they said.

BRS leader K T Rama Rao, the son of former chief minister of the state K Chandrashekhar Rao, has been named as accused no 1 followed by senior IAS officer Arvind Kumar and retired bureaucrat BLN Reddy as accused no 2 and 3.

The case 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 regime in February last year.

Rama Rao, also known as KTR, had denied wrongdoing, saying, "Where is corruption in this? We have paid Rs 55 crore. They (Formula-E) acknowledged the payment." He added that this was a 'straightforward' account.

"The HMDA (Hyderabad Metropolitan Development Authority) has an account in the Indian Overseas Bank and money has been transferred from that account..." KTR had said reacting to the ACB case.