Formula E Car Race Case: ACB Files Chargesheet Against KTR and Others

In a significant development in the Formula E car race case that created a stir in the state, ACB officials on Monday filed a chargesheet in the special court at Nampally, Hyderabad. In the case, BRS working president K. T. Rama Rao has been named as A1, IAS officer Arvind Kumar IAS as A2, former HMDA Chief Engineer B.L.N. Reddy as A3, sports consultant Kiran Malleshwar Rao as A4 and UK-based Formula E Operations (FEO) as A5. The chargesheet alleges that approximately ₹55 crore was diverted to foreign entities in violation of norms. It also states that assigning responsibilities to Ace NextGen and the alleged receipt of ₹45 crore by BRS through electoral bonds from the same firm constitute a quid pro quo arrangement.

The FIR in this case was registered on December 18, 2024, following which the Enforcement Directorate also initiated a separate case. During the course of the investigation, officials questioned KTR, Arvind Kumar and B.L.N. Reddy multiple times. The chargesheet includes allegations of fund misappropriation, fraud and criminal conspiracy. The investigation process took time due to the requirement of obtaining approval from the Governor for prosecuting KTR and clearance from the Department of Personnel and Training (DoPT) for action against IAS officer Arvind Kumar.

Regarding the organization of the Formula E race, a tripartite agreement was signed on October 25, 2022, between FEO, Ace NextGen and the Municipal Administration department. The Season-9 race was conducted near Hussain Sagar in February 2023. Subsequently, disputes arose, leading to a new agreement in October 2023 with a total project cost of ₹160 crore. As part of this, ₹45.71 crore was transferred from HMDA funds in foreign currency to FEO, which was later found to be in violation of RBI norms, resulting in a penalty imposed by the Income Tax Department. After the Congress government came to power, the ACB registered the case and carried out a detailed investigation, including online questioning of foreign representatives. With the filing of the chargesheet after multiple stages, the investigation has now been concluded.