Formula E CEO to appear virtually before ACB in ongoing investigation
Hyderabad: The Telangana Anti-Corruption Bureau (ACB) has issued a notice to the CEO of Formula E Operations Limited (FEO) to appear for questioning on February 17, 2025, in connection with the Formula E race case.
The CEO, who is based in London, will attend the questioning virtually. According to the reports, the CEO of FEO has requested a one-month extension for the inquiry.
Earlier, the ACB had summoned Anil Kumar Chalamalasetty, Managing Director of GreenKo, on January 18, 2025. GreenKo, a leading renewable energy company, was initially the primary sponsor for the Formula E race in Hyderabad but withdrew its sponsorship, causing financial and logistical issues for the event.
On January 7, 2025, ACB officials conducted searches at GreenKo’s offices in Hyderabad and other locations in Andhra Pradesh as part of an investigation into alleged financial irregularities related to the race. The inquiry is focused on possible discrepancies in sponsorship agreements and funding for the event.
GreenKo, through its subsidiary Ace Nxt Gen Private Limited, had originally committed to sponsoring the event but pulled out before fulfilling its obligations. The ACB is also investigating the company’s financial ties to the Bharat Rashtra Samithi (BRS). Reports suggest that GreenKo and its affiliates purchased electoral bonds worth ₹117 crore, including ₹49 crore encashed by the BRS. Notably, GreenKo bought bonds worth ₹19 crore before the Formula E agreement, with ₹11 crore donated to the BRS.
K.T. Rama Rao (KTR), working president of the BRS and former minister, appeared before the Enforcement Directorate (ED) on January 16, 2025, as part of the ongoing investigation. KTR was questioned about potential violations of the Prevention of Money Laundering Act (PMLA) and the Foreign Exchange Management Act (FEMA), particularly regarding 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 FEO. This transfer occurred without proper approvals, despite the original agreement limiting the government’s role to providing infrastructure for the event.
The ED is also examining a ₹54.8 crore payment for the 2023 race and scrutinizing 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.
On January 15, 2025, the Supreme Court dismissed a petition filed by KTR 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 decision, which had earlier rejected KTR’s plea.
The ACB investigation was triggered by concerns over a ₹55 crore transfer from the HMDA to FEO for a second Formula E race in Hyderabad, which was later canceled after the Congress government took office in December 2023. Both the ACB and ED are investigating potential financial mismanagement related to this transfer.
On December 12, 2024, Telangana Governor Jishnu Dev Varma approved the prosecution of KTR and Arvind Kumar after consulting the Attorney General. The state cabinet had instructed Chief Secretary Santhi Kumari to initiate the investigation.
KTR has denied the charges, calling them politically motivated. He has expressed his willingness to face the charges in court and called for a thorough investigation. Chief Minister A. Revanth Reddy has emphasized that the probe focuses on alleged corruption, not political motivations.
