HYDERABAD: After a 15-month investigation, Anti-Corruption Bureau (ACB) has named UK-based Formula E Organisation (FEO) and Ace Nxt Gen director Kiran Rao as accused in the Formula E Rs 55 crore alleged money diversion case.Alberto Longo, representing FEO, and Kiran Rao, director of Ace Nxt Gen, were named accused in the chargesheet filed in the ACB court, Nampally, on Monday, in addition to three accused — BRS working president and former MAUD minister K T Rama Rao and former special chief secretary (MAUD) Arvind Kumar and former HMDA chief engineer BLN Reddy, whose names figured in the FIR registered in Dec 2024.ACB alleged that they found quid pro quo between persons linked to Ace Nxt Gen and BRS, through electoral bonds, to help the firm get the first season sponsorship of the racing event.Confirming the allegations levelled in the FIR, ACB, in its chargesheet, claimed that KTR, Arvind Kumar and BLN Reddy took a decision to make the govt take over the responsibility to sponsor the second edition of Formula E race after Ace Nxt Gen decided to exit from the deal after sponsoring the first season in Hyderabad.ACB said the decision was taken in violation of laid-down business rules and procedure, leading to diversion of Rs 44 crore to FEO and nearly Rs 10 crore as taxes.“The very agreement was done by govt officials — KTR, Arvind and Reddy — in violation of rules. As per the Constitution, the agreement has to be done in the name of the governor. But in this case, it was done between MAUD and FEO,” sources told TOI.Another finding was that the proposal was not sent to the cabinet for approval. Similarly, rules laid down by the finance department were not followed while transferring the money to FEO.“FEO representative was made an accused since they did not return the Rs 44 crore to Telangana govt, as they received the sum in violation of rules,” the sources added.With regard to Ace Nxt Gen, the officials alleged that Rs 44 crore of electoral bonds were received by BRS from the company’s sister companies, when it was in power. In response to this, Ace Nxt Gen was hand-picked and given an opportunity to sponsor the Formula E events for a few seasons. However, the company backed out and refused to sponsor the second season. This made the then MAUD minister along with other accused take a decision to make the govt take the sponsorship role by transferring Rs 55 crore to FEO to retain the second edition race in Hyderabad.
