BRS leader KTR has been summoned by the investigating agency in the Formula E racing case. KTR has been summoned on January 7. ED has issued summons to BRS Executive President and former minister KT Rama Rao (KTR), senior IAS officer Arvind Kumar and former Chief Engineer of Hyderabad Metropolitan Development Authority (HMDA) BLN Reddy.

Kumar and Reddy have been summoned for questioning on January 2 and 3. The investigation is being conducted under PMLA based on the ACB FIR.

Was the money transferred abroad?

The ED also decided to launch a separate investigation into possible violations of FEMA. It will look into whether money was transferred abroad and whether foreign exchange rules were followed. In the enforcement case information report, the ED named KTR, Arvind and Reddy.

The charges against them relate to financial irregularities, including the unauthorised transfer of ₹55 crore from HMDA to Formula E Operations Limited (FEO) without mandatory approval. 

What does the agreement say?

As per the agreement, the role of the government will be limited to providing infrastructure and civic amenities. The allegation is that HMDA released funds despite not being a direct party to the agreement. This is the second money laundering case involving the family of former Telangana Chief Minister K. Chandrasekhar Rao.

KTR's sister K Kavitha was earlier arrested in the Delhi excise policy case and later released on bail. In such a situation, the ED summons is another political and legal challenge for the BRS party. 

BRS leader KTR's reply

On the other hand, Rama Rao has also responded to the matter, denying any wrongdoing and said, where is corruption in this? We have paid Rs 55 crore. They (Formula-E) have accepted the payment. He said it was a "direct" account.