Formula E race case: ACB all set to act against Arvind, Bal Reddy soon

The Anti-Corruption Bureau (ACB) is set to take action within the next two to three days following the Vigilance Commission’s approval to prosecute former Municipal Administration and Urban Development (MA and UD) Secretary Arvind Kumar and HMDA engineer Bal Reddy in the Formula E race case. The agency is also awaiting the Governor’s final approval to prosecute former minister KT Rama Rao (KTR).

According to top officials, Chief Secretary K Ramakrishna Rao has forwarded the government’s plea to Governor Jishnu Dev Varma, who had already granted permission for a case to be registered against KTR under the Prevention of Corruption Act. The government is confident of receiving a positive response from the Raj Bhavan.

The ACB’s nine-month-long probe has reportedly gathered sufficient evidence to substantiate allegations of public money misappropriation during payments to the Formula E race company. The agency has reportedly established a quid pro quo, alleging that Rs 44 crore was channelled to the BRS party through electoral bonds by a sponsoring firm linked to the Formula E event. The ACB has questioned KTR four times and Arvind Kumar five times during its investigation. Once the prosecution of the two officials and KTR is approved, the ACB will file a chargesheet against the accused.

During the previous BRS government’s tenure, the Municipal Administration Department signed a tripartite agreement with Formula E Organisers (FEO) and the promoter Ace Nxt Gen Pvt Ltd in 2022. Ace Nxt Gen, which was expected to finance four seasons, unilaterally withdrew from the second season, citing losses from the first.

Despite this, FEO was willing to organise the second season. On the advice of the then Municipal Minister, KT Rama Rao, the then Principal Secretary of the Municipal Administration Department, Arvind Kumar, transferred Rs 55 crore to FEO, including Rs 9 crore in taxes.

The Hyderabad Metropolitan Development Authority (HMDA) transferred the amount and was also included as the promoter, signing a Memorandum of Understanding (MoU) with FEO on

30 October 2023.