As expected, the Anti-Corruption Bureau (ACB) on Monday filed a chargesheet in the high-profile Formula-E race case before a special court in Nampally, naming Bharat Rashtra Samithi (BRS) working president and former minister K T Rama Rao (KTR) as the prime accused (A-1).
Other accused include senior IAS officer Arvind Kumar (A-2), former HMDA Chief Engineer B L N Reddy (A-3), sports consultant Kiran Malleswara Rao, and UK-based Formula E Operations (FEO) entity.
The chargesheet has alleged that there was a diversion of approximately Rs 55 crore to foreign entities in violation of norms.
A quid pro quo arrangement, wherein Ace Next Gen company—entrusted with responsibilities—allegedly routed Rs 45 crore to BRS via electoral bonds
The ACB alleged that there was a largescale misuse of public funds, cheating, and criminal conspiracy. The case stems from the Formula E race held near Hussain Sagar in February 2023 during the previous BRS regime.
A tripartite agreement was signed in October 2022 between Formula E Operations, Ace Next Gen, and the Municipal Administration department. The government committed significant funds for infrastructure and event hosting.
Following disputes between Ace Next Gen and FEO, a revised agreement was signed in October 2023 under KTR’s direction, committing around Rs 110 crore towards fees and taxes, and an additional Rs 50 crore for civic works.
Funds totaling over Rs 45 crore were transferred in foreign currency from HMDA accounts to FEO, allegedly violating RBI norms, leading to penalties.
After the Congress came to power, the ACB initiated a probe, later joined by the Enforcement Directorate (ED). Multiple rounds of questioning were conducted with the accused.
The case saw delays due to requirement of sanction to prosecute a sitting public representative (KTR), granted by the Governor, need for central clearance to prosecute IAS officer Arvind Kumar and challenges in examining foreign entities, leading to online interrogation.
With the filing of the chargesheet, the investigation phase has formally concluded, setting the stage for judicial proceedings in what is likely to remain a politically sensitive case in Telangana.