Formula E-Race Case: ACB Issues Notice to Ace Next Gen

In a significant development in the Formula E-Race case, the Anti-Corruption Bureau (ACB) has issued notices to Ace Next Gen, the initial promoter of the event. The ACB has summoned the company for an inquiry on January 18, raising questions over its role in the event's management. Previously, the ACB interrogated former minister K.T. Rama Rao (KTR), senior IAS officer Arvind Kumar, and retired HMDA Chief Engineer BLN Reddy regarding this case.

The controversy stems from the agreement signed on October 25, 2022, which mandated Ace Next Gen to bear the costs for Seasons 9, 10, 11, and 12 of the Formula E-Race. The Season 9 race was held in Hyderabad in February 2023. Despite being obligated to pay 50% of the operational costs—amounting to ₹90 crores—to Formula E-Race Operations (FEO) by May 2023 for the Season 10 race slated for February 2024, Ace Next Gen reportedly withdrew, citing losses incurred during Season 9.

Following this, then-minister K.T. Rama Rao directed the Hyderabad Metropolitan Development Authority (HMDA) to assume the role of promoter. Subsequently, in October 2023, HMDA transferred ₹45.71 crores to FEO. This financial transfer and Ace Next Gen's failure to fulfill its responsibilities have now become the focus of the ACB's investigation.

The ACB is also examining why no action was taken against Ace Next Gen after it withdrew from its commitments, leaving HMDA to shoulder the financial burden.