ED books BRS leader KTR in Formula-E race linked money laundering case

The case was registered under relevant sections of the Prevention of Corruption Act and sections dealing with criminal breach of trust, conspiracy under IPC.

In more trouble for BRS leader K T Rama Rao, the Enforcement Directorate(ED) on Friday filed a money laundering case against him 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.

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.

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 as reported by news agency PTI.

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

Meanwhile, the Telangana ACB on Thursday registered a case against BRS working president and MLA Rama Rao over alleged payments, some of it in foreign currency without approvals, to conduct Formula-E race in Hyderabad during the previous regime. The case was registered under relevant sections of the Prevention of Corruption Act and sections dealing with criminal breach of trust, conspiracy under IPC.

“Where is corruption in this? We have paid Rs 55 crore. They (Formula-E) acknowledged the payment. This is a straightforward account. HMDA has an account in Indian Overseas Bank and money has been transferred from that account..." Rama Rao had said reacting to the case.

*With Agency Inputs