Telangana IAS officer Arvind Kumar appears before ED for questioning in Formula-E case
Hyderabad: Former Municipal Administration & Urban Development Department Special Chief Secretary Arvind Kumar on Thursday appeared before the Enforcement Directorate (ED) in the Formula-E race alleged financial irregularities case involving him and BRS leader K.T. Rama Rao.
The senior Indian Administrative Officer (IAS) reached the ED regional office around 11 a.m. on Thursday.
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 chief engineer of Hyderabad Metropolitan Development Authority (HMDA) B.L.N. Reddy appeared before the ED on Wednesday and the ED officials grilled him for nine hours.
Reddy was reportedly questioned about different aspects of 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 chief engineer was also asked why no clearance was taken from the Reserve Bank of India (RBI) for transfer of the money.
Arvind Kumar is likely to be questioned on the basis of the statement given by Reddy.
The former HMDA official reportedly told the officials that he acted on the orders of Arvind Kumar.
The ED had earlier issued notices to Reddy and Arvind Kumar to appear on January 2 and 3 respectively but they sought more time.
The ACB last month registered a FIR against BRS working president and former minister 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.
Arvind Kumar had appeared before the ACB on Wednesday and was quizzed for about six hours.
K.T. 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 on January 16.
The ED on Tuesday issued fresh notice to K.T. 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.