ACB prepares chargesheet in Formula E race case

HYDERABAD: The Anti-Corruption Bureau (ACB) has prepared a chargesheet in the Formula E race case, naming Bharat Rashtra Samithi (BRS) leader K T Rama Rao and IAS officer Arvind Kumar among the accused.

Officials wrote to the state government on September 9 seeking prosecution sanction. Once clearance is granted by the governor, the chargesheet will be filed in court.

The chargesheet, running to over 100 pages and supported by more than 1,000 documents, focuses on alleged quid pro quo dealings. According to investigators, Greenko’s ₹44 crore worth of electoral bonds to BRS, diversion of Hyderabad Metropolitan Development Authority (HMDA) funds, and agreements tied to race expenditure of ₹600 crore form the core of the case.

Agreements and fund diversion

The ACB is set to submit records including government orders, agreements between Formula E Operations (FEO) of Britain, Greenko’s Hyderabad-based sister firm Ace Next Gen, and the Municipal Administration and Urban Development department, as well as HMDA board documents approving fund transfers.

A tripartite agreement was signed on October 25, 2022, between Ace Next Gen, FEO and MA&UD to host seasons 9 to 12 of Formula E in Hyderabad. As per the deal, Ace Next Gen was to bear the race expenditure. Season 9 was held on February 11, 2023, with HMDA spending ₹12 crore on track construction.

Ace Next Gen reportedly suffered losses of ₹165 crore, leading it to withdraw from further seasons. Subsequently, the BRS government signed a new agreement with FEO and MA&UD on October 30, 2023, to spend ₹600 crore on the races. The ACB has reported that Greenko companies purchased ₹44 crore in electoral bonds in return for these arrangements.