Hyderabad: The Enforcement Directorate (ED) initiated an investigation into the Formula-E Race case on Thursday. Prominent individuals, including former minister KT Rama Rao, senior IAS officer Arvind Kumar and former HMDA chief engineer BLN Reddy are set to face interrogation.
The ED has issued summonses to the accused with Reddy scheduled to appear on Thursday, Kumar on Friday and KTR on January 7. The interrogation will take place at the ED office and KTR's questioning is expected to hinge on the statements provided by Reddy and Kumar.
The case revolves around alleged funds transfers from the account of the Hyderabad Metropolitan Development Authority (HMDA) to the Formula-E Operations (FEO) account in London for organising Formula-E races in Hyderabad.
The Anti-Corruption Bureau (ACB) had earlier filed an FIR alleging that the funds were transferred in violation of rules. The ED intervened to investigate potential violations of the Foreign Exchange Management Act (FEMA) and possible money laundering.
It has been alleged that funds were sent to the FEO account without adhering to proper procedures, raising concerns about FEMA violations. HMDA failed to deduct taxes while transferring the funds abroad, resulting in the additional payment of ₹8.06 crore to the Income Tax Department.
Mismanagement and Fraud
The ED is also probing whether fraudulent practices were involved in fund transfers and subsequent financial transactions.
The ED investigation centres around the following suspicions: Were international monetary regulations breached during the transfer? Were the funds laundered after being sent to the FEO account? and Did the HMDA administration fail in its fiduciary responsibilities, leading to financial losses?
Also Read:
