The Telangana Anti-Corruption Bureau (ACB) has alleged that the Bharat Rashtra Samithi received Rs 44 crore through electoral bonds before the formal execution of agreements related to Season 9 of the Hyderabad Formula E race, describing the transactions as part of an alleged quid pro quo arrangement.
The allegations were made in a chargesheet recently filed before a court as part of the ACB’s investigation into alleged irregularities in the conduct of the international motorsport event.
According to the chargesheet, the electoral bonds were allegedly linked to the selection of Ace Next Gen, a subsidiary of the Greenko Group, as the promoter of the Formula E race for a proposed period of 10 years.
The ACB alleged that Greenko director Anil Kumar Chalamalasetty instructed the directors of 26 affiliated companies to purchase electoral bonds worth Rs 1 crore to Rs 2 crore each.
Investigators found that all these companies operated from the same address in Hyderabad’s HITEC City, used common email infrastructure and shared rental arrangements. The agency said these factors demonstrated Chalamalasetty’s effective control over the companies.
The chargesheet states that the alleged conspiracy began in December 2021, when Chalamalasetty attended a meeting at T-Hub at the invitation of then Municipal Administration Minister K T Rama Rao.
According to Chalamalasetty’s statement recorded by the ACB, international sports consultant Govada Kiran Malleswara Rao assured Greenko that sponsoring the Formula E event would generate revenues of Rs 70 crore to Rs 75 crore. Greenko subsequently agreed to pay £15 million per season.
The statement further alleges that in April 2022, Kiran informed Greenko that he had negotiated with Formula E Operations to reduce the promoter’s fee from £15 million to £9 million. In return, he allegedly sought Rs 34 crore in electoral bonds for the BRS.
The proposal reportedly highlighted the commercial benefits of becoming the promoter of Season 9 and the potential boost to Greenko’s reputation in the electric vehicle sector.
The ACB further alleged that shortly before the tripartite agreement was signed in October 2022, Greenko was asked to provide an additional Rs 10 crore to the BRS through electoral bonds, which it allegedly did.
In his statement, Chalamalasetty reportedly said that Greenko had initially anticipated losses of only Rs 20 crore to Rs 30 crore during the first season. However, the project ultimately resulted in losses of around Rs 160 crore.
Consequently, the company withdrew from funding Season 10, following which Formula E Operations terminated the tripartite agreement.
The investigation has named five accused in the case, including former minister K T Rama Rao, former Special Chief Secretary Arvind Kumar, former Hyderabad Metropolitan Development Authority Chief Engineer B L N Reddy, private consultant Govada Kiran Malleswara Rao and Formula E Operations.
The ACB stated that Kiran had previously served as Executive Vice-President of Ace Urban Developers and held a key managerial position in Ace Next Gen.
It also referred to Alberto Longo, Chief Championship Officer of UK-registered Formula E Operations, in connection with the event.
The agency further alleged that despite the promoter suffering losses of around Rs 160 crore during Season 9, official files presented the event as a success.
The ACB claimed that notes prepared by Arvind Kumar may have misled the subsequent government about the financial outcome of the project.
The chargesheet also questioned claims made by K T Rama Rao before the Telangana High Court and the Supreme Court that Nielsen had conducted an impact assessment of the Formula E race.
According to the ACB, Formula E Operations alone had commissioned Nielsen Sports to conduct the study. The agency said it sought clarification from Formula E Operations on April 28, 2025, regarding the authenticity of the report but received no response.
It also sought information from Nielsen officials on June 2, 2025, but did not receive the requested details.
Based on its investigation, the ACB concluded that there was no official study establishing that the Formula E event had generated measurable economic benefits or enhanced Telangana’s brand value.
