HYDERABAD: In a major setback to the Enforcement Directorate (ED), the Telangana High Court has dismissed a batch of nine Civil Miscellaneous Second Appeals (CMSAs) challenging an Appellate Tribunal order that directed the release of properties attached in connection with the alleged disproportionate assets case involving former Andhra Pradesh chief minister YS Jaganmohan Reddy.
A division bench comprising Justice P Sam Koshy and Justice Suddala Chalapathi Rao pronounced the judgment on Friday, affirming the tribunal’s findings and declining to interfere with its order.
The ED had alleged that industrialist Nimmagadda Prasad received undue benefits in the VANPIC Project and, as a quid pro quo, invested Rs 854.50 crore in companies allegedly linked to Jagan. Based on these allegations, properties connected to the case had been attached under proceedings initiated by the agency.
However, the tribunal, after examining the material on record, concluded that the investments in question were made before the VANPIC Project was conceived. Consequently, it held that the investments could not be treated as bribes or illegal gratification linked to the project. The tribunal partly allowed the appeals before it and ordered the release of the attached properties.
Aggrieved by the decision, the ED approached the High Court seeking reversal of the tribunal’s order. The division bench had reserved its verdict on December 23, 2025.
While dismissing the appeals, the High Court observed that the tribunal had comprehensively examined the facts and evidence. The bench noted that no additional material or valid legal grounds had been placed before it to warrant interference with the findings recorded by the tribunal.
Accordingly, the court dismissed all nine appeals filed by the ED, thereby upholding the order directing the release of the attached VANPIC properties.
