Telangana ACB summons GreenKo MD amid Formula E race probe
Hyderabad: The Telangana Anti-Corruption Bureau (ACB) has summoned Anil Kumar Chalamalasetty, Managing Director of GreenKo, to appear before the agency on January 18, 2025.
GreenKo, a leading renewable energy company, was initially the primary sponsor for the Formula E race, which was held in Hyderabad. However, the company later withdrew its sponsorship, creating financial and logistical complications for the event.
On January 7, 2025, ACB officials conducted searches at GreenKo’s offices in Hyderabad and other locations across Andhra Pradesh as part of an investigation into alleged financial irregularities surrounding the race. The probe is focusing on potential discrepancies between sponsorship agreements and funding for the event.
GreenKo, through its subsidiary Ace Nxt Gen Private Limited, was originally involved as a sponsor for the event but pulled out before fulfilling its commitments. The ACB is also investigating the company's financial connections to the Bharat Rashtra Samithi (BRS), with reports indicating that GreenKo and its affiliates purchased electoral bonds worth ₹117 crore, including a ₹49 crore encashment by the BRS. Notably, GreenKo purchased bonds worth ₹19 crore before the Formula E agreement, with ₹11 crore donated to the BRS.
KTR appears before ED in Formula E Investigation
Meanwhile, K.T. Rama Rao (KTR), working president of the BRS and former minister, appeared before the Enforcement Directorate (ED) today, January 16, 2025, as part of the ongoing Formula E race investigation. KTR reached the ED office in Basheerbagh under heavy security, with around 200 police personnel stationed nearby.
The ED is investigating potential violations of the Prevention of Money Laundering Act (PMLA) and the Foreign Exchange Management Act (FEMA), particularly focusing on unauthorized fund transfers abroad. According to the Enforcement Case Information Report (ECIR), KTR, along with Arvind Kumar and B.L.N. Reddy, is linked to a ₹55 crore transfer from the Hyderabad Metropolitan Development Authority (HMDA) to Formula E Operations Limited (FEO). This transfer occurred without proper approvals, even though the original agreement limited the government’s role to providing infrastructure for the event.
The ED is also scrutinizing a ₹54.8 crore payment for the 2023 race and examining whether future financial commitments exceeding ₹600 crore for subsequent seasons were authorized. Senior IAS officer Arvind Kumar and former HMDA chief engineer B.L.N. Reddy have also been questioned in the investigation.
Supreme Court Denies Relief to KTR
On January 15, 2025, the Supreme Court dismissed a petition filed by KTR seeking to quash the FIR filed by the ACB regarding the alleged misappropriation of funds in the Formula E case. The Court upheld the Telangana High Court’s earlier decision, which had rejected KTR’s plea to quash the criminal case.
The investigation into the Formula E race, initiated by the ACB, follows concerns raised over a ₹55 crore transfer from the HMDA to FEO for a second Formula E race in Hyderabad, which was canceled after the Congress government assumed office in December 2023. Both the ACB and ED are investigating potential financial mismanagement linked to this transaction.
On December 12, 2024, Telangana Governor Jishnu Dev Varma approved the prosecution of KTR and Arvind Kumar after consultations with the Attorney General. The state cabinet had previously instructed Chief Secretary Santhi Kumari to initiate an investigation.
KTR has denied the charges, calling them politically motivated. He expressed his readiness to face the charges in court and called for a thorough investigation. Chief Minister A. Revanth Reddy has maintained that the probe is focused on alleged corruption, not political motivations.