HYDERABAD: The Anti-Corruption Bureau (ACB) on Monday filed a chargesheet in the Formula E race case, naming former Municipal Administration minister KT Rama Rao as A1. Former special chief secretary Arvind Kumar has been named A2, HMDA’s then chief engineer BLN Reddy A3, former sports consultant Kiran Malleshwar A4, and UK-based Formula E Operations Limited (FEO) A5.
The chargesheet, running to over 250 pages, was filed after the Department of Personnel and Training (DoPT) in February granted sanction to prosecute IAS officer Arvind Kumar. The ACB has invoked provisions of the Prevention of Corruption Act, 1988 and IPC sections relating to criminal breach of trust and conspiracy.
The ACB alleges that about `55 crore was diverted to a foreign entity in violation of norms. Officials said all accused were examined multiple times during the investigation, with Rama Rao questioned on three occasions.
ACB to tread the money trail in E Prix case investigation
The filing of the chargesheet marks a key step in the probe, enabling the trial process to begin. The ACB is expected to rely on official records, financial transactions and correspondence to establish alleged irregularities in the payments linked to the Formula E event held in Hyderabad.
The case pertains to payments made by the Hyderabad Metropolitan Development Authority (HMDA) to FEO under a tripartite agreement signed on October 25, 2022, with Ace Nxt Gen Pvt Ltd as sponsor and the Municipal Administration department.
The agreement covered hosting Formula E races in Hyderabad for multiple seasons. The inaugural race was held on February 11, 2023, with HMDA incurring expenditure of about `12 crore.
Investigators said differences later arose between FEO and the sponsor, which withdrew from subsequent seasons. In October 2023, HMDA cleared two instalments of GBP 2,250,000 each towards Season 10, transferring the funds to FEO through a bank in Hyderabad. The total outgo stood at about `54.88 crore.
The ACB alleges that these payments were made from HMDA’s general funds without mandatory Cabinet approval for expenditure exceeding `10 crore. Following a complaint by Municipal Administration secretary Dana Kishore in October 2024, a case was registered in December 2024. The Enforcement Directorate has also initiated a parallel probe into alleged money laundering and FEMA violations.