Supreme Court, Inset: Nimmagadda Prasad | Image Source: X

New Delhi: The Supreme Court on Tuesday directed Hyderabad-based industrialist Nimmagadda Prasad and four firms to deposit with its registry an additional security of Rs 200 crore within two weeks in a case related to enforcement of a UAE court decree of nearly Rs 950 crore in favour of Ras Al Khaimah Investment Authority (RAKIA).

The top court, however, left to the Commercial Courts of Hyderabad and Ranga Reddy the question whether Prasad's family-controlled entities constitute a unified structure whose assets can be reached to satisfy the decree in favour of RAKIA.

It said parties are at liberty to raise all contentions before such fora which are not bound by the opinion expressed by the impugned orders and observations of this court in this judgment.
The dispute relates to the Vanpic Project, a 2008 joint venture for developing ports, an industrial corridor and an airport in Andhra Pradesh. RAKIA alleged that funds entrusted to Prasad for the project were misappropriated.
The top court had reserved the verdict on August 11 on a batch of pleas related to the execution of a money decree passed by a UAE court in favour of RAKIA and against Prasad and his firms.
The apex court on Tuesday also held that a statement made by IQuest Enterprises, one of the firms, before a commercial court in Hyderabad could not be treated as an unconditional undertaking and, therefore, did not warrant contempt action.
A bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana said, "the Statement made by IQuest (one of the firms in which Prasad has allegedly financial exposure) before the Commercial Court, Hyderabad in its Counter Affidavit …, cannot be treated as unconditional undertaking and hence the findings of the High Court that the statement does not invite a contempt action is upheld".
Delivering the judgement, Justice Mohana directed the commercial courts to decide on all the pending applications in the case within four months. The court said the present value of the UAE decree, including interest up to July 23, 2026, was Rs 949.96 crore.
"The Respondents are directed to furnish an additional Security of Rs 200 crores with the Registry of this Court, over and above the sums/assets already deposited within two weeks," it ordered.
The deposits will be subject to the outcome of the Execution Proceedings pending before the Commercial Courts of Hyderabad and Ranga Reddy, the bench clarified.
"The question as to whether NP's (Prasad's) family-controlled entities constitute a unified structure whose assets can be reached to satisfy the decree, and the issue of lifting the corporate veil etc. is left open to be agitated before and decided by the Commercial Courts of Hyderabad and Ranga Reddy in the pending Execution proceedings," the bench said.
RAKIA had approached the Supreme Court seeking enforcement in India of a money decree passed by a UAE court against Prasad. The decree had directed him to pay AED 267.94 million, which was approximately Rs 543 crore at the time, along with six per cent annual interest.
RAKIA has filed as many as four petitions in the top court seeking execution of the money decree against Prasad and others. It has also made Matrix Pharmacorp Private Ltd, Tianish Laboratories Private Ltd, IQuest Enterprises Private Ltd and Moschip Technologies Ltd as parties.
The UAE court had found RAKIA to be a victim of a fraudulent scheme and directed Prasad to pay the amount. The decree was later upheld by the superior court in the UAE. The top court noted that Prasad had already provided security of about Rs 231.70 crore and deposited title deeds of a 37-acre land parcel in Telangana. RAKIA had also secured attachment of assets worth Rs 212 crore in execution proceedings.
For the purpose of the present proceedings, the court made a rough valuation of the Telangana land at Rs 250 crore, while making it clear that its actual value would be determined by the executing court.
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