After ACB books KTR, ED to lodge case on Formula-E irregularities

Enforcement Directorate investigating ₹54.88 crore Formula-E race payment irregularities involving K.T. Rama Rao, Aravind Kumar, and B.L.N. Reddy.

Officials in the Enforcement Directorate (ED) confirmed that they are in the process of registering cases based on the FIR filed by the Anti-Corruption Bureau (ACB) against Bharat Rashtra Samithi (BRS) working president K.T. Rama Rao, former Special Chief Secretary Aravind Kumar, and former Chief Engineer of HMDA B.L.N. Reddy.

The FIR, registered following a complaint from Principal Secretary M. Dana Kishore, alleges irregularities in payments exceeding ₹54.88 crore during the conduct of the Formula-E race in Hyderabad in February 2023.

The ACB filed the case on December 19, 2024. The complaint detailed alleged violations in payments made to Formula-E Operations Limited (FEO) and others, bypassing established financial procedures. A tripartite agreement signed in October 2022 outlined the Telangana government’s limited role in the event. However, when disputes arose between FEO and the sponsor, Ace Nxt Gen Pvt. Ltd., the government assumed financial responsibilities.

The FIR highlights that ₹45.7 crore was remitted to FEO in September and October 2023 without obtaining required approvals from regulatory authorities. Additionally, the payments incurred a tax burden of ₹8.06 crore, which was borne by the Hyderabad Metropolitan Development Authority (HMDA). These remittances were made despite FEO terminating its agreement with the state government in October 2023, and without any legal obligation to pay under the subsisting contract. The ACB’s investigation indicates that the payments were unauthorised and caused a wrongful loss to the exchequer while benefiting private entities.