HYDERABAD: After nine months of investigation into the Formula E race case, the Anti-Corruption Bureau (ACB) on Tuesday submitted a request, along with a brief report, to the government, seeking permission from the Governor and the Vigilance Commission to file a charge sheet in court.
The move was in accordance with procedure since the accused include BRS working president and MLA KT Rama Rao and senior IAS officer Arvind Kumar.
The ACB had obtained the Governor’s approval before starting its inquiry. Now, if both the Governor and Vigilance Commission grant clearance, a charge sheet will be filed in the court.
Sources said the ACB found crucial evidence linking the BRS to about Rs 40 crore in electoral bonds received from Formula E sponsors. The Hyderabad Metropolitan Development Authority (HMDA) had transferred Rs 45 crore, including Rs 10 crore as conversion fee, to the sponsors for the event.
Investigators suspect quid pro quo
Investigators suspect the bonds were given as quid pro quo. They point to Rama Rao favouring Formula E sponsors without Cabinet approval and transferring foreign exchange without Reserve Bank of India (RBI) clearance.
The ACB booked Rama Rao, Arvind Kumar and the Formula E organisers over the first Hyderabad E-Prix in February 2023. For the second edition, Rama Rao allegedly instructed HMDA Commissioner and MA&UD Principal Secretary Arvind Kumar to transfer `54 crore, including foreign exchange tax, in pounds to the organisers.
After coming to power, the Congress government flagged the transfers. It said HMDA funds were routed to a foreign-based company without Cabinet approval. Alleging misuse of funds, it ordered an ACB probe in December 2024. Cases were then filed against Rama Rao (A1), Arvind Kumar (A2), and then HMDA chief engineer BLN Reddy (A3).
The ACB questioned Rama Rao twice, Arvind Kumar and BLN Reddy thrice, and also examined Formula E officials online. Meanwhile, the Enforcement Directorate’s Hyderabad unit booked Rama Rao, Arvind Kumar and Reddy under the Prevention of Money Laundering Act. This was based on the ACB’s FIR and supporting documents. The ED has already questioned Rama Rao once, Arvind Kumar twice, and Reddy twice.