Even as Bharat Rashtra Samithi working president and former Telangana minister K T Rama Rao is keeping his fingers crossed over the high court’s judgement on his quash petition on the Formula-E race scandal, he is facing the threat of being arrested by the Enforcement Directorate.
The ED authorities on Friday served notices on KTR and other accused in connection with the Formula-E race case.
While KTR was asked to appear before ED authorities on January 7, senior IAS officer Arvind Kumar and HMDA former chief engineer BLN Reddy were asked to appear on January 2 and 3 respectively.
The ED authorities initiated the probe under Prevention of Money Laundering Act (PMLA), based on first information report FIR lodged by the state Anti-Corruption Bureau.
“If the ED finds any conclusive evidence in the case, it might as well arrest KTR and others in the case,” sources said.
The ED also decided to open a separate investigation into potential violations of FEMA. This will focus if funds were transferred abroad and whether foreign exchange regulations were adhered to.
In the Enforcement Case Information Report, the ED named KTR, Arvind and Reddy. Charges against pertain to financial irregularities, including the unauthorised transfer of 55 crore from HMDA to Formula E Operations Limited (FEO) without mandatory approvals.
According to the agreement, the govt's role would be restricted to providing infrastructure and civic amenities.
The allegation is that HMDA released funds despite not being a direct party to the agreement, leading to questions about procedural compliance and financial accountability.
Investigators are examining transfer of 54.8 crore for 2023 race and assessing whether financial commitments exceeding Rs 600 crore for upcoming seasons violated legal, financial protocols.
