The Telangana High Court, led by Chief Justice Ujjal Bhuyan and Justice CV Bhaskar Reddy, has delivered a significant verdict by ordering the release of 11,804 acres of land belonging to the Vadarevu and Nizampatnam Port & Industrial Corridor (Vanpic) in Andhra Pradesh (AP). This verdict comes in response to the Enforcement Directorate’s (ED) attachment of the land.
Concerns of Ras Al Khaimah Emirate and the Indian Government
During the ongoing investigation into allegations of corruption, the emirate of Ras Al Khaimah, one of the promoters, expressed grave concerns regarding its investment of over Rs 845 crore and raised the issue with the Indian government.
Background of the Case
The ED had attached the assets of Andhra Pradesh Chief Minister YS Jagan Mohan Reddy as part of its probe into alleged disproportionate assets. VanPic, led by Nimmagadda Prasad, founder of Matrix Laboratories, faced the brunt of these allegations. The ED had accused several companies, including VanPic, of receiving benefits from former Chief Minister and Jagan Reddy’s father YS Rajasekhara Reddy (YSR) and investing in Jagan Reddy’s businesses in return. Both Jagan Reddy and Prasad were initially arrested by the CBI but were later released on bail.
The High Court’s Decision
The Telangana High Court upheld the decision of the appellate tribunal, which found no evidence of the accused being involved in money laundering. This ruling comes as a significant relief to the Vanpic promoters. The court criticized the tribunal for not declaring the ED’s orders illegal and directing the promoters to approach the special court for the release of their attached properties.
Acquisition of Land for the Vanpic Project
In March 2008, the Andhra Pradesh government, under YSR’s leadership, facilitated the acquisition of land for the Vanpic project, which included two seaports and an industrial corridor. The cost of this acquisition amounted to approximately Rs 16,000 crore under a government-to-government agreement with the emirate of Ras Al Khaimah (RAK).
Appellate Tribunal’s Observations
In July 2019, the appellate tribunal stated that the investigating agency failed to adequately consider the attachment of Vanpic’s assets. The tribunal found no reason to believe that the accused had committed an offense under the Prevention of Money Laundering Act (PMLA). Consequently, the tribunal directed the Vanpic promoters to approach the special court to seek the release of their attached property.
High Court’s Order to Release Vanpic’s Properties
As the ED did not appeal against the tribunal’s orders, the Telangana High Court has ordered the release of Vanpic’s properties. This ruling signifies a significant turning point in the case, providing much-needed respite to the Vanpic project and its promoters.
