Nimmagadda’s Repeated Breach Under HC Lens
The Rakia lost hundreds of crores of rupees, which it invested in the Vadarevu Nizampatnam Port and Industrial Corridor in the erstwhile combined Andhra Pradesh at the behest of Prasad
Hyderabad: The Ras-Al-Khaimah Investment Authority (Rakia), a state-owned entity of Ras-Al-Khaimah, one of the emirates of the UAE, has approached the Telangana High Court against the repeated breach of the undertaking given to it by noted industrialist Nimmagadda Prasad.
The Rakia lost hundreds of crores of rupees, which it invested in the Vadarevu Nizampatnam Port and Industrial Corridor in the erstwhile combined Andhra Pradesh at the behest of Prasad.
The project landed in controversy and remained a non-starter following the CBI cases against former AP chief minister Y.S. Jagan Mohan Reddy.
Prasad’s company allegedly made use of the investment made by RAK for land acquisition for the project.
According to Rakia, an UAE court passed a decree in its favour for an amount equivalent to `600 cr towards damages for misappropriation of funds by Prasad.
Rakia filed a petition to execute the decree before the Commercial Court in Hyderabad. The company also requested the Commercial Court to stop Prasad from transferring his properties or shares.
However, Rakia discovered that Nimmagadda Prasad still went ahead with several other financial transactions and the acquisition of new firms, including buying back one of the companies he sold to Mylan. Prasad went behind bars in the CBI cases and was also detained in Serbia following a look-out notice by Rakia.
The High Court on Monday reserved the case for orders.
