HYDERABAD: A thorough probe into the allegations of irregularities in organising the Formula-E race may spell more trouble for former minister KT Rama Rao, as the ACB is expected to register a case under the Prevention of Corruption Act. This could, in turn, lead to an investigation by the ED since the matter, prima facie, involves the transfer of public funds to foreign companies.
The ED may step in to determine whether the transfer of funds violated the Prevention of Money Laundering Act (PMLA) or the Foreign Exchange Management Act (FEMA), depending on the evidence gathered by the ACB. The ED is likely to seek case details once the ACB finalises its action plan and files a First Information Report (FIR). Based on this FIR, the ED may file an Enforcement Case Information Report (ECIR) against Rama Rao and others.
Such a development is expected to create political upheaval in the state since Rama Rao is the BRS working president. Any action against him could demoralise party leaders and cadres, who may face added pressure as the investigation progresses.
Meanwhile, sources disclosed that, in addition to the probe, the ACB is considering raids on the residences of Rama Rao, his relatives, and government employees linked to the Formula-E race. If these raids yield anything incriminating, investigators could file separate cases under the Disproportionate Assets (DA) Act. Sources revealed that the ACB has gathered details of Rama Rao’s income, Income Tax returns and property records, and may look for discrepancies between his declared assets and actual holdings.
Officials familiar with the matter said that allegations of misusing public funds and asset-related discrepancies could pose legal challenges for Rama Rao and his associates.