By admin 
The Enforcement Directorate (ED) has summoned working president and former Bharat Rashtra Samithi (BRS) minister KT Rama Rao, senior IAS officer Arvind Kumar and former chief engineer of the Hyderabad Metropolitan Development Authority (HMDA) BLN Reddy in connection with the case regarding the alleged financial irregularities in the conduct of the Formula-E race when the BRS was in power.
ED asked KTR to appear on January 7, while Arvind Kumar and Reddy were directed to appear on January 2 and 3 respectively.
The ED is conducting the investigation under the Prevention of Money Laundering Act (PMLA), based on an FIR filed by the Anti-Corruption Bureau (ACB).
The agency had also initiated a parallel investigation under the Foreign Exchange Management Act (FEMA) to investigate possible violations.
The ACB on December 29 filed a case against KTR, senior IAS officer Arvind Kumar and HMDA former chief engineer Reddy for alleged irregularities in organizing the Formula E car race last year.
The First Information Report (FIR) was registered under various sections of the Prevention of Corruption Act over allegations of financial irregularities in the conduct of the Formula-E race when BRS was in power.
The FIR was registered following a complaint by M. Dana Kishore, principal secretary, municipal administration and urban development.
This followed Governor Jishnu Dev Varma’s permission on the state government’s request. The ACB registered the FIR under Sections 13(1)(A) and 13(2) of the Prevention of Corruption Act, along with Sections 409 and 120(B) of the Indian Penal Code.
The complainant alleged that a payment of over Rs.54.88 crore was made to UK Formula-E Operations Limited (FEO) and others, which constituted a “gross violation of established procedures”.
A day after the ACB registered the FIR, the Enforcement Directorate also registered an Enforcement Case Information Report (ECIR) under the PMLA, against KT Rama Rao, Arvind Kumar and Reddy.
Under the original agreement, the government’s role was limited to providing infrastructure and social services for the race.
However, there are allegations that HMDA transferred funds despite not being a direct party to the agreement.
The ED is also probing whether financial commitments of over Rs 600 crore for the upcoming seasons violate legal and financial protocols.