ACB Calls Ace NXT Gen's MD for Inquiry in Formula-E Investigation
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Synopsis
In a move to intensify its investigation into the Formula-E racing scandal, the Telangana ACB has summoned Ace NXT Gen's MD for questioning on January 18. This follows previous interrogations of several officials regarding alleged financial irregularities.
Key Takeaways
- Telangana ACB intensifies Formula-E probe.
- Ace NXT Gen MD summoned for questioning.
- Several officials previously interrogated.
- Financial losses cited for withdrawal from sponsorship.
- Enforcement Directorate also involved in the investigation.
Hyderabad, Jan 16 (NationPress) In a significant escalation of its investigation into the Formula-E car racing controversy, the Telangana Anti-Corruption Bureau (ACB) has summoned the Managing Director of Ace Nxt Gen for interrogation on January 18.
Ace Nxt Gen, which was formerly the official sponsor for the Formula race, received the notice approximately 10 days after the ACB conducted searches at its offices and the locations of its affiliated companies.
Previously, the ACB has interrogated Bharat Rashtra Samithi (BRS) Working President and ex-minister K.T. Rama Rao, former Special Chief Secretary for Municipal Administration & Urban Development Arvind Kumar, and the former Chief Engineer of the Hyderabad Metropolitan Development Authority (HMDA), B.L.N. Reddy.
According to the tripartite agreement established on October 25, 2022, Ace Nxt Gen was the sponsor for seasons 9 through 12 of the Formula-E race scheduled to be held in Hyderabad. Season 9 took place in Hyderabad on February 10 and 11, 2023.
However, Ace Nxt Gen, a subsidiary of Greenko Group, withdrew from the agreement, citing financial losses.
At that time, Minister for Municipal Administration and Urban Development Rama Rao had instructed the HMDA to take on the sponsorship for Season 10, which is planned for February 2024 in Hyderabad.
The HMDA transferred Rs.45.71 crore to the UK-based Formula-E Operations (FEO) in foreign currency.
Following the Congress government's takeover in December 2023, the E race was canceled, and an inquiry was initiated regarding the disbursement of government funds that did not adhere to the proper protocols, alongside allegations of corruption.
Last month, the ACB initiated a case against Rama Rao, Arvind Kumar, and B.L.N. Reddy for suspected irregularities in the payment process. The HMDA had transferred funds in British pounds to FEO without the necessary approval from the Reserve Bank of India (RBI) and bypassing established financial protocols.
The FIR was filed under Sections 13 (1) (A) and 13 (2) of the Prevention of Corruption Act, as well as Sections 409 and 120 (B) of the Indian Penal Code. On January 7, the ACB executed raids at the offices of Greenko Group in Hyderabad and other locations in the neighboring state of Andhra Pradesh concerning the alleged irregularities related to Formula-E sponsorship.
The raids targeted company offices in Madhapur in Hyderabad, Vijayawada, and Machilipatnam in Andhra Pradesh.
The ACB is scrutinizing the sponsorship agreement and event funding, aiming to determine the reasons behind Ace Nxt Gen's exit from the agreement.
Additionally, the Enforcement Directorate is also investigating the situation under the Prevention of Money Laundering Act (PMLA). The central agency is examining potential breaches of the Foreign Exchange Management Act (FEMA). On Thursday, Rama Rao appeared before the ED for questioning.
