The Enforcement Directorate (ED) is set to initiate a money laundering investigation against Bharat Rashtra Samithi (BRS) working president and former Telangana minister KT Rama Rao (KTR) in connection with alleged financial irregularities in organizing the 2023 Formula E race in Hyderabad. The case involves the unauthorized transfer of ₹55 crore from the Hyderabad Metropolitan Development Authority (HMDA) to Formula E Operations (FEO) without proper approvals. An FIR filed by the Telangana Anti-Corruption Bureau (ACB) has named KTR as the primary accused, alongside senior IAS officer Arvind Kumar and HMDA chief engineer BLN Reddy.

According to the FIR, the funds were allocated for a second Formula E event, which was later canceled after a change in government in December 2023. The allegations include violations of RBI guidelines during the payment process. On December 12, Telangana Governor Jishnu Dev Varma granted approval for prosecuting KTR and others involved. The ED plans to request the FIR from ACB and file an Enforcement Case Information Report (ECIR) to initiate further action.

KTR has denied the accusations, labeling them as politically motivated. He has expressed his readiness to cooperate with the investigation and face the allegations legally. The ACB, in its ongoing probe, is also set to interrogate KTR and other officials regarding the alleged financial mismanagement. The political ramifications of the case have intensified, with opposition parties demanding accountability from the BRS leadership.