HYDERABAD: The Telangana High Court on Tuesday dismissed a petition filed by Vadarevu and Nizampatnam Industrial Corridor (Vanpic) Projects Pvt Ltd seeking quashing of prosecution in the CBI’s quid pro quo case.
Justice EV Venugopal rejected the plea filed by the company, represented by its general manager PK Ravi, challenging the criminal proceedings before the Principal Special Judge for CBI cases, Nampally. The corporate entity had questioned the CBI court’s decision to take cognisance of offences attributed to it.
Vanpic Projects Pvt Ltd, floated by industrialist Nimmagadda Prasad during the tenure of former chief minister YS Rajasekhara Reddy, is accused of investing in companies owned by YSRCP president and former CM YS Jagan Mohan Reddy in return for land allotments.
24K acres of land alienated to Vanpic sans Cabinet nod: CBI
The CBI filed a chargesheet against 14 accused, including the company and Prasad, for cheating, criminal conspiracy and related offences.
In July 2022, the High Court had quashed the case against the company on the ground that it was an artificial person. The CBI challenged the decision in the Supreme Court, which remanded the matter for fresh hearing. On rehearing, the High Court upheld the prosecution.
With the latest order, Vanpic will face trial before the CBI Special Court. Special counsel for the CBI, Srinivas Kapatia, argued that Prasad had manipulated the company’s shareholding, and that criminal intent of persons controlling a corporate entity could be attributed to it. According to the CBI, the then government in 2008 proposed the Rs 17,000-crore Vanpic project, awarding it to the Government of Ras Al Khaimah (RAK) on a government-to-government basis.
However, it alleged that deviations from Cabinet approvals allowed private firms, including Navayuga Engineering and Vanpic Projects Pvt Ltd controlled by Prasad, to take control, sidelining RAK. The agency said about 24,000 acres of land was alienated in favour of Vanpic without Cabinet approval, even though it was not the designated special purpose vehicle.
In return, Prasad allegedly paid Rs 854.5 crore to Jagan Mohan Reddy’s companies as quid pro quo for government favours. With the latest order, Vanpic Projects Pvt Ltd will face trial before the CBI Special Court along with the other accused.