Former Municipal Administration and Urban Development Department Special Chief Secretary Arvind Kumar appeared before the Enforcement Directorate (ED) on Thursday in connection with the Formula-E Race-linked financial irregularities case involving him and BRS leader KT Rama Rao.
The senior IAS Officer reached the ED’s regional office around 11 am on Thursday and left after around seven hours of questioning. The ED recorded his statement on transferring funds to FEO.
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).
Former Hyderabad Metropolitan Development Authority (HMDA) Chief Engineer BLN Reddy appeared before the ED on Wednesday and he was questioned for nine hours.
Reddy was reportedly asked about the different aspects of the Rs 55 crore transferred to the UK-based Formula-E Operations (FEO) in forex, allegedly violating the FEMA and PMLA. He was also asked why no clearance was taken from the RBI for transferring the money.
Arvind Kumar is being reportedly questioned on the basis of the statements given by BLN Reddy. He reportedly told officials that he acted as per the orders of Arvind Kumar.
The ED had earlier issued notices to BLN Reddy and Arvind Kumar to appear on January 2 and 3 respectively but they sought more time.
The ACB last month registered an FIR against BRS Working President KT Rama Rao, Arvind Kumar and BLN Reddy for alleged irregularities in the payment made by the 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.
Arvind Kumar had appeared before the ACB on Wednesday and was quizzed for about six hours.
KT Rama Rao, who is the accused number one in the case, appeared before the ACB on Thursday. He is scheduled to appear before the ED again on January 16.
The ED on Tuesday issued a fresh notice to KT Rama Rao, directing him to appear before it on January 16 after he failed to present himself before the agency on Tuesday. The BRS leader had sought more time to appear before the agency.
