Hyderabad, Jan 16 Bharat Rashtra Samithi (BRS) working president and former minister K. T. Rama Rao on Thursday appeared before the Enforcement Directorate (ED) in Formula-E race case.
Amid tight security, he reached the ED's regional office in Basheerbagh around 10.45 a.m.
One lawyer was allowed into the ED office with KTR.
Tension prevailed at the ED office as several BRS workers gathered to show solidarity. They staged a protest and raised slogans against the Central government.
Police detained the protesters, including women, and whisked them away in police vans.
Former ministers Gangula Kamalakar and Srinivas Goud, BRS MLAs and MLCs were among those who gathered outside the ED office to show solidarity with KTR.
Police made elaborate security arrangements at the ED office. About 200 policemen were deployed to maintain law and order.
Three Assistant Commissioners of Police and eight inspectors were among the officers deployed. Teargas vehicles and water canons were also kept ready as a precautionary measure.
The ED is conducting the probe under the Prevention of Money Laundering Act (PMLA) based on the First Information Report (FIR) filed by the Anti-Corruption Bureau (ACB).
The Central agency is looking into possible violations of the Foreign Exchange Management Act (FEMA). The ED already questioned two other accused in the case - former Municipal Administration and Urban Development department special chief secretary Arvind Kumar and former chief engineer of Hyderabad Metropolitan Development Authority (HMDA) B. L. N. Reddy.
The ED is likely to question KTR about different aspects of the transfer of about Rs 55 crore to UK-based Formula-E Operations (FEO) in foreign exchange, allegedly in violation of the provisions of FEMA and PMLA.
The former minister may be asked why no clearance was taken from the Reserve Bank of India (RBI) for the transfer of the money.
The ACB last month registered an FIR against KTR, Arvind Kumar and BLN Reddy for alleged irregularities in payment by HMDA to FEO and associated entities without adhering to established financial procedures.
The FIR was registered under Sections 13 (1) (A) and 13 (2) of the Prevention of Corruption Act, along with Sections 409 and 120 (B) of the Indian Penal Code.
KTR had appeared before the ACB on January 9. He was questioned for over six hours focusing on his role as then minister of municipal administration and urban development in signing the agreement to conduct Formula-E race in 2023 when BRS was in power.
The anti-graft agency has also questioned the other two accused. The Supreme Court on Wednesday dismissed the quash petition of KTR.
Earlier, the Telangana High Court on January 7 refused to quash the FIR. It was on October 25, 2022 that the Municipal Administration and Urban Development Department entered into a tripartite agreement with Formula E Operations (FEO) Limited and Ace Nxt Gen Private Limited (sponsor) for conducting Formula E races for 9, 10, 11 and 12 seasons in Hyderabad.
The 'Season 9' of the race was held on February 11, 2023, when the BRS government was in power. However, later the sponsor backed out citing financial losses.
The HMDA which was under KTR's Ministry transferred about Rs 55 crore to FEO. The money in British Pounds was transferred allegedly without mandatory approval from the Reserve Bank of India (RBI).
The Congress government that took over in December 2023 cancelled the E race and also sought an enquiry into the transfer of government funds without following the norms and also the allegations of corruption.
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