The Internet of Things [IoT] has provided fascinating solutions in various fields. As the significant usages of IoT in smart cities incorporate almost all the domains such as healthcare, Vehicle to Vehicle (V2V), Energy sector, home automation, pollution monitoring, garbage collection, gardening, environment, road and rail transportation, education, public and private sector organization, etc., the need for developing an intelligent IoT architecture for every domain is a paramount criterion. In this research, we are interested in designing and developing, an IoT architecture, Velocious, which will provide a fast and speedy transportation system without delay and with a greater obstacle avoidance mechanism. The integration of sensors and actuators with a cognitive level of thinking based on circumstances leads to decisions with reasoning using the explainable Artificial Intelligence (AI) concept. The procedure of data acquisition, data transferring, and data interpretation requires a federated learning concept with context awareness where the location, time, and situation act as the prime context in decision-making. It can be purported that the development of a smart city relies on different sectors, and consequently the development of an Intelligent Transport System (ITS), highly relies on expansion. Development, penetration, and growth of IoT technologies with seamless integration with other domain architectures too. To lead a smart and safe travel with fuel consumption, obstacle avoidance, and traffic management decisions are mandated with explainable Artificial Intelligence (AI) which could be built in Velocious. This research provides Velocious to be applicable to incorporate integrating all the necessary information required for setting up decisions and making rules. These types of rules can also be viewed as a rule set with proper explanations in decision-making in critical circumstances. Meanwhile, the developed Velocious IoT architecture can also be integrated seamlessly with other IoT architectures for smart Energy, smart health care, etc., for the development of smart cities.