Ex-HMDA official appears for grilling before ACB in Formula-E case

Hyderabad, Jan 10 (IANS) Former chief engineer of the Hyderabad Metropolitan Development Authority (HMDA) B.L.N. Reddy appeared before the Anti-Corruption Bureau (ACB) on Friday over financial irregularities in the conduct of the Formula-E race.

He reached the ACB office in Banjara Hills to appear before the investigating officers around 10 a.m.

Reddy is the third accused in the case registered by the ACB for alleged financial irregularities in the conduct of Formula-E race in Hyderabad in 2023 when the Bharat Rashtra Samithi (BRS) was in power.

The ACB is probing transfer of about Rs.55 crore from HMDA to UK-based Formula-E Operations (FEO) in foreign exchange, allegedly in violation of established procedures.

Reddy appeared before ACB day after BRS working president and former minister K. T. Rama Rao was questioned by the agency for more than six hours.

Former Municipal Administration & Urban Development (MA&UD) department special chief secretary Arvind Kumar was also quizzed by the ACB for about six hours on Wednesday.

The senior IAS officer appeared before the Enforcement Directorate (ED) on Thursday.

The Central agency quizzed him for about nine hours.

It is investigating whether there were any violations of the Foreign Exchange Management Act (FEMA) or if money was laundered through the transfer of funds to FEO.

Arvind Kumar told the ED that then MA&UD minister KT Rama Rao instructed him to make the payment immediately as any disruption to the Formula E race would damage the state’s brand image.

Reddy was grilled by the ED for nine hours on Wednesday. He was reportedly questioned about different aspects of transfer of about Rs.55 crore to FEO in foreign exchange, allegedly in violation of the provisions of FEMA and the Prevention of Money Laundering Act (PMLA).

The former chief engineer was also asked why no clearance was taken from the Reserve Bank of India (RBI) for transfer of the money.

He reportedly told the ED that he followed the directions of Arvind Kumar.

K.T. Rama Rao, who is the accused number one in the case, has been summoned by the ED on January 16.

The ACB last month registered a FIR against K.T. Rama Rao, Arvind Kumar and 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. Based on the FIR, the ED registered a case and took up investigation under PMLA.

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