SC asks Hyderabad, Ranga Reddy courts to decide ₹949 Crore asset dispute
HYDERABAD: The Supreme Court has left it to the commercial courts in Hyderabad and Ranga Reddy to decide whether entities controlled by Nimmagadda Prasad’s family form a unified structure. The courts will also decide whether those assets can be used to satisfy a ₹949.96-crore foreign decree, as reported by PTI.
A bench headed by Chief Justice Surya Kant, along with Justices Joymalya Bagchi and V Mohana, directed the respondents to provide an additional ₹200 crore as security within two weeks. This is in addition to the security and assets already deposited. The deposits will remain subject to the outcome of the execution proceedings.
The court said the Ras Al Khaimah Investment Authority (RAKIA) decree stood at ₹949.96 crore, including interest up to July 23, 2026. Prasad has already provided security worth about ₹231.70 crore. He has also deposited title deeds for 37 acres of land in Telangana.
SC declines to treat IQuest statement as contempt undertaking
The case relates to the VANPIC project. The project involves the Vadarevu Port, Nizampatnam Port, an industrial corridor and an airport in Andhra Pradesh.
RAKIA alleged that Prasad misappropriated funds entrusted to him for the project.
The Ras Al Khaimah Court of First Instance in the UAE passed a decree in RAKIA’s favour on February 2, 2022. It found RAKIA to be a victim of a fraudulent scheme and directed Prasad to pay AED 267.94 million. The amount was about ₹543 crore at the time. The decree also carried 6% annual interest.
The UAE’s superior court upheld the decree in December 2022.
RAKIA then approached Indian courts to execute the foreign decree. It filed proceedings before the Commercial Court in Hyderabad and the Commercial Court in Ranga Reddy. It also sought to bring assets of entities linked to Prasad within the execution proceedings.
The Supreme Court also upheld the Telangana High Court’s finding on a statement made by IQuest Enterprises before the Hyderabad Commercial Court.
The court said the statement did not amount to an unconditional undertaking. It therefore did not warrant contempt action.
IQuest had said it decided not to proceed with the acquisition of Viatris. The Supreme Court described this as a clarification rather than a firm undertaking that could attract contempt proceedings.
Commercial courts to decide corporate veil and asset reach
RAKIA has initiated proceedings involving Matrix Pharmacorp Pvt Ltd, Tianish Laboratories Pvt Ltd, IQuest Enterprises Pvt Ltd and Moschip Technologies Ltd.
RAKIA claims that Prasad and his family exercise extensive control over a network of entities. It argues that the companies operate as a unified structure.
The Supreme Court said the commercial courts must decide whether the entities form such a structure. They must also determine whether the corporate veil can be lifted and whether the assets can be reached to satisfy the decree.
RAKIA has already secured attachment of Prasad’s assets valued at ₹212 crore, the court noted.
The court also made a rough valuation of the 37-acre Medchal land at ₹250 crore for the current proceedings. It clarified that the executing court will determine the actual value.
The Supreme Court directed the Commercial Courts in Hyderabad and Ranga Reddy to hear the main execution petitions and related applications on priority. It asked the courts to decide the matters within four months.
