Supreme Court Setback for Nimmagadda Prasad in Vanpic Case

The Supreme Court has directed businessman Nimmagadda Prasad to deposit an additional ₹200 crore within two weeks in connection with the Vanpic case. The direction was issued while considering execution petitions filed by Ras Al Khaimah Investment Authority (RAKIA) before the Hyderabad and Rangareddy commercial courts to enforce a UAE court decree. The UAE court had directed Prasad to pay ₹543.92 crore along with six per cent annual interest from October 4, 2021. The Supreme Court noted that the outstanding amount, including interest, has reached around ₹949.96 crore. Prasad had already furnished ₹231.70 crore in cash and land documents as security, while assets worth another ₹212 crore had been attached by the commercial courts. Considering the disputed valuation of the land, the court ordered an additional ₹200 crore deposit as security.

A bench comprising Chief Justice of India Justice Surya Kant, Justice Joymalya Bagchi and Justice V. Mohan directed the Hyderabad and Rangareddy commercial courts to decide the main execution petitions and related applications within four months. The bench observed that the UAE decree in favour of RAKIA is required to be enforced in India and that the allegation that Prasad was attempting to shield his assets through various corporate entities appeared to have prima facie substance. The parties have been given liberty to argue before the commercial courts on whether companies controlled by Prasad's family members can be brought within the scope of enforcement or whether their corporate structure should be disregarded. The Supreme Court also upheld the Telangana High Court's decision dismissing RAKIA's contempt petition against Prasad's companies.