Hyderabad: The Telangana Anti-Corruption Bureau (ACB) has intensified its investigation into the Formula-E race case, conducting searches at multiple Greenko Group company offices across Hyderabad and Andhra Pradesh.
The searches, which began early Tuesday morning, focus on suspected financial irregularities related to the Formula-E event held in Hyderabad in 2023, during the tenure of Bharat Rashtra Samithi (BRS) in power.
ACB Raids Greenko Group Offices
The ACB team carried out searches at the offices of Greenko Group’s subsidiary companies, including Ace Nxt Gen Pvt. Ltd., Ace Urban Race, and Ace Urban Developers, all based in Hyderabad’s Madhapur area. The investigation also extended to the premises of Greenko Energy in Machilipatnam, Andhra Pradesh. The move is part of a broader probe into the alleged financial misconduct and irregularities surrounding the Formula E race held in the city.
Greenko Group, one of India’s prominent renewable energy companies, was initially involved in the Formula E race as a sponsor. In October 2022, Greenko’s subsidiary, Ace Nxt Gen Pvt. Ltd., entered into a tripartite agreement with the Telangana government and Formula E Operations (FEO) for sponsoring the season 10 of the Formula E race. However, following a dispute with FEO, Ace Nxt Gen pulled out of the sponsorship agreement, which led to a series of complications.
After the withdrawal, the Telangana state government reportedly took on the financial responsibility for the event, making payments to FEO through the Hyderabad Metropolitan Development Authority (HMDA). These transactions, however, allegedly occurred without necessary regulatory approvals, raising questions about the transparency and legitimacy of the funding process.
ACB’s Investigation and FIR Registration
The Telangana ACB launched a detailed investigation into the financial irregularities linked to the Formula E event, culminating in the registration of an FIR last month. Among those named in the FIR are BRS working president and former minister K. T. Rama Rao, Special Chief Secretary Arvind Kumar, and former Chief Engineer of HMDA, B.L.N. Reddy.
The ongoing searches are believed to be aimed at uncovering evidence related to the sponsorship agreements, financial dealings, and the reasons behind Ace Nxt Gen’s sudden withdrawal from the Formula E race. Investigators are also examining the circumstances under which the Telangana government assumed financial liability for the race and whether this decision was made with proper approvals.
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The Electoral Bond Controversy
Adding to the controversy, reports have emerged suggesting that Greenko Group made substantial contributions to the BRS party through electoral bonds. It is alleged that the group and its associated firms purchased electoral bonds worth approximately Rs. 117 crore. Out of this amount, BRS is reported to have encashed Rs. 41 crore. These payments have raised concerns about potential quid pro quo arrangements between the company and the ruling political party.
In addition, just six months before the Formula E agreement, Greenko’s companies had purchased electoral bonds worth Rs. 19 crore. This has sparked further allegations of financial favoritism, particularly in light of the state’s financial dealings surrounding the Formula E race.
BRS and Greenko’s Response
K. T. Rama Rao, the BRS working president, has strongly denied the allegations of financial benefits, calling them baseless. He dismissed claims that Greenko extended financial support worth Rs. 41 crore to BRS through electoral bonds. Rama Rao further pointed out that Greenko had also purchased electoral bonds from other political parties, including Congress and BJP, implying that the transactions were part of a routine financial activity rather than political favoritism.
What’s Next for the Formula E Case?
The ongoing investigation by the ACB is likely to continue for the foreseeable future, with authorities looking for further evidence related to the financial dealings surrounding the Formula E race. The ACB is also expected to probe the involvement of key political figures and government officials, as well as the transparency of the sponsorship agreements and financial transactions related to the event.
As the investigation unfolds, the ACB is expected to keep a close watch on the role of Greenko Group and its subsidiaries in the controversy. The outcome of this probe could have significant political and legal repercussions for the BRS government and the companies involved.
