Formula E race: Greenko MD Anil Chalamalasetty summoned by ACB

Hyderabad: The sleuths of Telangana Anti-Corruption Bureau (ACB) have issued summons to Greenko managing director Anil Kumar Chalamalasetty and asked him to appear before the agency on January 18.

Greenko was the primary event sponsor for the Formula E race held in Hyderabad in 2023. However, the firm later backed off. The ACB carried out raids against three companies owned by Greenko the day after former minister and BRS working president KT Rama Rao was grilled by the ACB in the case.

The summons is part of the investigation being carried out in the Formula E race case in which MLA KTR, IAS officer Arvind Kumar and former HMDA chief engineer have been accused of misuse of funds. KTR has been charged for verbally ordering transfer of Rs 55 crore to an international agency sans the approval of the Cabinet.

The sleuths of Telangana Anti-Corruption Bureau (ACB), who carried out raids against three companies connected to the Formula E race’s former event sponsor, Greenko, found that the money invested for building the infrastructure for the race was borrowed from the Hyderabad real estate company Ace Urban Developers.

Who are the companies mentioned in the case?

The sleuths of ACB carried out raids against three companies on January 7—Ace Nxt Gen Office in Madhapur; ⁠Ace Urban Race in Hyderabad; and ⁠Ace Urban Developers in Machilipatnam, Andhra Pradesh.

The ACB raids, which lasted till late night on Tuesday, found that Ace Nxt Gen borrowed around Rs 90 crore from Ace Urban Developers and invested around Rs 110 crore for building the infrastructure of the Formula E Championship held in 2023 in Hyderabad. These companies are said to be connected to Greenko, the primary sponsor for the race.

The searches come a day after former minister and BRS working president KT Rama Rao refused to appear before the ACB without his legal team.

Further investigation found that the promoters of Ace Urban Developers are identified as Anil Chalamalasetty, Swathi Chalamalasetty and Kumar Raghavan. The agency is also looking into the role of one Ponnagati Srinivas Rao, said to be a promoter of Prime Properties engaged in real estate in Hyderabad. It is learnt that one of the reasons why Greenko stepped out of the contract was because they ‘burnt their pockets’ (suffered a huge financial loss) following the first season.

KTR appears before ED

MLA KTR appeared before the federal agency on 16th January. Following the day long questioning, KTR informed that ED officials sought information, including details of his personal bank accounts and assets. " The event generated $82 million in economic benefits for the state's economy - the event reflects a national significance. All funds transferred from the government to the Formula-E organizers were accounted for, with clear records" he said.