HYDERABAD: The Telangana High Court on Friday dismissed a batch of appeals filed by the Directorate of Enforcement (ED) challenging an order of the Appellate Tribunal under the Prevention of Money Laundering Act (PMLA) that directed the release of properties attached in connection with the alleged VANPIC quid pro quo case involving former Andhra Pradesh chief minister and YSRCP chief Y.S. Jagan Mohan Reddy and others.
Court Upholds Tribunal's Order
A division bench of the court upheld the tribunal’s July 2019 order, while observing that the reasons recorded by the tribunal adequately addressed the issues involved and did not warrant interference in appeal.
Background of the Case
The appeals were filed by the ED against several companies and individuals, including Y.S. Jagan Mohan Reddy and industrialist Nimmagadda Prasad, after the tribunal partly allowed their appeals and ordered the release of attached properties.
According to the ED, Nimmagadda Prasad received undue benefits in the VANPIC project and, in return, invested ₹854.50 crore in companies linked to Jagan Mohan Reddy as a quid pro quo. Based on these allegations, the agency attached various properties and initiated proceedings under the PMLA.
Tribunal's Findings
The tribunal, however, examined the chronology of events and held that the investments in the companies associated with Jagan Mohan Reddy were made before the VANPIC project was conceived. It concluded that the investments could not therefore be treated as bribes or illegal gratification linked to the project. On that basis, it partly allowed the appeals and directed the release of the attached properties.
ED's Challenge Dismissed
Challenging the tribunal’s findings, the ED approached the High Court seeking to set aside the order. After hearing the matter, the court reserved its judgement in December 2025 and finally dismissed the appeals.
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