ACB Chargesheet Implicates UK Firm and Director in Telangana Formula E Rs 55 Crore Diversion Scandal
In a significant development, the Anti-Corruption Bureau (ACB) has filed a chargesheet naming the UK-based Formula E Organisation (FEO) and Ace Nxt Gen director Kiran Rao as accused in the alleged Rs 55 crore money diversion case related to the Formula E racing event in Hyderabad. This follows a comprehensive 15-month investigation into the controversial sponsorship deal.
Key Accused and Allegations
The chargesheet, submitted to the ACB court in Nampally on Monday, includes Alberto Longo, representing FEO, and Kiran Rao alongside three previously named individuals: BRS working president and former Municipal Administration and Urban Development (MAUD) minister K T Rama Rao (KTR), former special chief secretary Arvind Kumar, and former Hyderabad Metropolitan Development Authority (HMDA) chief engineer BLN Reddy. These three were initially named in the FIR registered in December 2024.
ACB investigators allege a quid pro quo arrangement between entities linked to Ace Nxt Gen and the BRS party, facilitated through electoral bonds. This arrangement purportedly helped the firm secure sponsorship for the first season of the Formula E race in Hyderabad.
Rule Violations and Government Sponsorship
Confirming the FIR allegations, the ACB chargesheet claims that KTR, Arvind Kumar, and BLN Reddy made a decision for the government to take over sponsorship of the second edition after Ace Nxt Gen exited the deal post the first season. This decision, according to the ACB, was taken in violation of established business rules and procedures, leading to a diversion of Rs 44 crore to FEO and nearly Rs 10 crore in taxes.
"The very agreement was executed by government officials—KTR, Arvind, and Reddy—in contravention of constitutional norms. As per the Constitution, such agreements must be made in the name of the governor, but in this instance, it was directly between MAUD and FEO," sources revealed to TOI.
Procedural Lapses and Financial Irregularities
Further findings indicate that the proposal was not presented to the state cabinet for approval, and finance department regulations were disregarded during the fund transfer to FEO. "FEO's representative was included as an accused because they failed to return the Rs 44 crore to the Telangana government, having received the amount through rule violations," added sources.
Regarding Ace Nxt Gen, officials allege that BRS received Rs 44 crore in electoral bonds from the company's sister entities while in power. In return, Ace Nxt Gen was allegedly favored with sponsorship opportunities for multiple Formula E seasons. However, the company withdrew from sponsoring the second season, prompting the accused officials to arrange government sponsorship by transferring Rs 55 crore to FEO to retain the event in Hyderabad.
Broader Implications
This case highlights serious concerns about governance and financial accountability in public projects. The ACB's chargesheet underscores alleged collusion between corporate interests and political entities, with electoral bonds playing a central role. The investigation continues to unravel the complexities of the deal, which has drawn scrutiny for its impact on state funds and adherence to legal protocols.
