HYDERABAD: The Enforcement Directorate (ED) on Thursday questioned BRS working president KT Rama Rao for seven hours in the Formula-E race case. Sources revealed that the ED asked the former Municipal Administration minister to furnish details of his bank accounts and assets, to which he agreed.
Rama Rao was questioned by the ED for the first time in connection with the transfer of funds for the Formula-E race. It may be recalled that the former minister had been questioned by the Anti-Corruption Bureau on January 9 in the same case.
According to sources, ED’s questions centred around the transfer of money to a foreign company without proper approvals, the reason why it was transferred when the election code was in force and whether officials informed him about procedural violations. They also questioned why Ace Nxt Gen, the initial sponsor, backed out of the tripartite agreement. During his questioning, Rama Rao submitted an independent report by Nielsen, which highlighted that the race generated $82 million in economic benefits for Telangana.
ED focuses on financial transactions to foreign company
Rama Rao also shared the state’s Electric Vehicle (EV) Policy launched in October 2020, aimed at positioning Telangana as a mobility hub with alternative fuel resources.
However, the ED reportedly focused on the financial transactions to a foreign company and why Ace Nxt Gen quit as a promoter after Season 9.
During the seven-hour questioning session, ED officials reportedly asked Rama Rao over 40 questions while the ACB had posed around 80 queries to him. A tripartite agreement was signed on October 25, 2022 between Formula E Operations Limited (FEO), MAUD department and Ace Nxt Gen Pvt Ltd for hosting Formula E Seasons 9, 10, 11 and 12 in Hyderabad. Ace Nxt Gen entered as a sponsor and exited after Season 9. Following the exit of Ace Nxt Gen, FEO and MAUD department signed a fresh agreement on October 30, 2023. However, the Hyderabad Metropolitan Development Authority (HMDA) paid Rs 54.88 crore in two instalments before the agreement was signed.
ED officials, according to sources, asked Rama Rao why the government made the HMDA the sponsor for Season 10. The officials pointed out that although foreign remittances were made, no formal approvals were obtained for transferring the funds. Moreover, the payments were made before the agreement was signed and while the MCC was in force.
They also noted that the payments for Season 10 were made in foreign currency, in violation of existing rules and regulations.
