Hyderabad: The Enforcement Directorate (ED) has registered a case against former minister and BRS working president KT Rama Rao (KTR), senior IAS officer Arvind Kumar, and former HMDA chief engineer BLN Reddy under the Prevention of Money Laundering Act (PMLA) and the Foreign Exchange Management Act (FEMA).
The case, filed on Friday, comes just a day after the Anti-Corruption Bureau (ACB) launched an investigation against the trio. ED sources confirmed KTR as Accused No. 1 (A-1), Arvind Kumar as A-2, and BLN Reddy as A-3.
The investigation focuses on alleged fund transfers to Formula-E Operations Limited, a UK-based company, for organizing a Formula E race in Hyderabad. The agency aims to trace the ultimate beneficiary and scrutinize possible links between beneficiary accounts and undisclosed recipients.
In coordination with the ACB probe, the ED may conduct searches or raids and has reportedly prepared to issue notices summoning the accused for questioning. This development has sparked concern among KTR and his supporters.
Earlier, the ED requested and received the FIR and related documents from the ACB, which detail the transfer of Rs 55 crore by the Hyderabad Metropolitan Development Authority (HMDA) to foreign entities.
KTR has denied the allegations, stating, “Where is the corruption in this? The payment of Rs 55 crore has been acknowledged by Formula E. This is a straightforward transaction.” He emphasized that funds were transferred from HMDA’s official account at Indian Overseas Bank.
The ED and ACB investigations are expected to unfold in parallel in the coming days.
