Formula E race case: ACB raids Ace Nxt Gen, Ace Urban Developers

Hyderabad: Telangana Anti Corruption Bureau (ACB) sleuths raided three companies linked to the Formula E race case, in Hyderabad and Andhra Pradesh.

Searches are being carried out at Ace Nxt Gen Office, Madhapur- Hyderabad; Ace Urban Race, and ⁠Ace Urban Developers at Machilipatnam in Andhra Pradesh.

The directors of these companies are Anil Chalamalasetty and Mahesh Kolli- who are also promoters of Greenko group.

These companies are said to be connected to Greenko- the primary sponsor of the Formula E race held in 2023. The searches come a day after KTR refused to appear before the ACB sans his legal team.

It is pertinent to note that, Greenko through its other sister concerns and group companies, donated around Rs 41 Crore to BRS as electoral bonds in 2023.

KTR also denied the baseless allegations that Greenko had extended financial benefits of Rs 41 crore to the BRS through electoral bonds.

The BRS working president also said that the same company had also purchased electoral bonds from the Congress and the BJP.

Greenko obtained electoral bonds in 2022, and the Formula-e race was held in 2023. In fact, the corporation suffered losses as a result of the e-race and had withdrawn its sponsorship for the event for the following year, he stated during a chit-chat with media on Monday.

Why is ACB raiding Greenko companies

During BRS’s tenure, KTR and other officials, including IAS officers Arvind Kumar and Jayesh Ranjan, succeeded in bringing Formula E to Hyderabad, with the first race held as part of Season 9 in February 2023. Greenko was their official sponsor.

However, after the first season Greenko, the event sponsor, withdrew, citing financial reasons, and issued a letter stating they wouldn't hold the next season in Hyderabad.

Following this, Six months before the Telangana elections, Formula E officials raised sponsorship concerns, prompting BRS to fund the race, paying Rs 55 crore to secure Hyderabad’s inclusion. KTR instructed Arvind Kumar to facilitate this. But, BRS losing elections turned the table around.

Upon assuming power, Congress canceled the Formula E event, issued a notice to former MAUD Chief Secretary Arvind Kumar, and criticized BRS for prioritizing Formula E. Congress’s main allegations were: Why did BRS spend Rs 55 crore on Formula E?

The question was also raised about the inaction against Ace Nxt Gen, a subsidiary of Greenko, for defaulting and backing out of the event. Subsequently, the event scheduled to be held in February 2024, was cancelled. The promoters later said it was a ‘breach of contract’.

Meanwhile, a team of ACB officials reached Vijayawada to conduct searches on Greenko office. In Machilipatnam, searches have been ongoing since 7 am on Tuesday with 10 officials carrying out the raids.

ACB is all set to conduct raids on KTR residences in Raidurgam, Nandinagar.

On the other hand, the ED is waiting for order copy and issue a fresh notices to all accused.

This is a developing story