The 2023 Formula E race in Hyderabad, one of the most important events in India's motorsport calendar, has become the center of a political controversy in Telangana. The state government alleges that Greenko, the company that organized the event, engaged in a quid pro quo arrangement with the Bharat Rashtra Samithi (BRS) party, putting MLA KT Rama Rao under the scanner. (More Motorsport News)
The Greenko Group's offices in Hyderabad faced raids by the Telangana Anti-Corruption Bureau (ACB), on Tuesday for the financial irregularities under PMLA (Prevention Of Money Launde𓆏ring Act 2002).
Formula E Race controversy explained In Five Points:
1. Allegations
The allegations on the Greenko c𝓰ompany are that they and their subsidiaries have donated ₹41 crore to the BRS part🅷y through electoral bonds, with 26 transactions occurring between April and October 2022.
2. Unapproved Financial Transactions:
Reportedly, the Hyderabad Metropolitan Development Authority (HMDA) made payments of around ₹54.88 crore to Formula E Operations Limited without adhering to established legal financial procedures. The payments were made without obtaining the necessary administrative approvals or the concurrence of the Fina𝕴nce Department, which is mandatorꦏy for expenditures exceeding ₹10 crore.
3. Investigations into Greenko Group:
According to the reports, the ACB has conduc🍨ted searches at the offices of the Greenko Group which is a renewable energy company that sponsored the Formula E event through its subsidiary Ace Nxt Gen Private Limited.
4. Cancellation of Future Events
This controversy has affected the future of Formula E in India as the Formula E Operations Limited has cancelled the�♐� planned Hyderabad E-Prix.
5. Political Repercussions
The opposition parties are calling for a comprehensive investigation into the matter, which has escalated political turmoil in Telangana. The matter got intense especially when the BRS leader K.T. Rama R💮ao, who was present to record a statement, refused to enter, alleging that the agency was not allowing his lawyer to be present during the proceedings.
