The ruling strengthens the CBI’s case that VANPIC lies at the heart of a quid-pro-quo investment scandal involving former Andhra Pradesh Chief Minister YS Jagan Mohan Reddy.
Published Aug 27, 2025 | 3:22 PM ⚊ Updated Aug 27, 2025 | 3:22 PM
The Telangana High Court. (Wikimedia Commons)
Synopsis: Justice EV Venugopal rejected VANPIC’s plea for quashing of prosecution in the quid pro quo case in the principal Special Judge court for CBI cases, Nampally. He said the charges framed by the CBI required a full trial in the trial court.
The Telangana High Court on Tuesday, August 26, dismissed a plea to drop the Vadarevu and Nizampatnam Port Industrial Corridor (VANPIC) Project Pvt Ltd’s plea to quash prosecution proceedings against it by the CBI.
The ruling is a major setback for industrialist Nimmagadda Prasad, the project’s promoter. It strengthens the CBI’s case that VANPIC lies at the heart of a quid-pro-quo investment scandal involving former Andhra Pradesh Chief Minister YS Jagan Mohan Reddy.
Justice EV Venugopal rejected VANPIC’s plea for quashing of prosecution in the quid pro quo case in the principal Special Judge court for CBI cases, Nampally. He said the charges framed by the CBI required a full trial in the trial court.
The VANPIC was launched in 2008 under the then Chief Minister YS Rajasekhara Reddy of undivided Andhra Pradesh. It aimed to build two deep-water ports and an industrial corridor across 13,000–24,000 acres in Prakasam and Guntur districts.
The ₹16,000-crore venture promised to transform the coast into an industrial hub. But the project stalled and has remained entangled in legal disputes and corruption allegations for more than a decade.
The CBI and Enforcement Directorate (ED) alleged that the state government illegally allotted large tracts of land to VANPIC, bypassing mandatory procedures. In return, Nimmagadda Prasad allegedly invested ₹854.5 crore in cement, media, and power companies linked to Jagan.
The probe agency said these investments were not genuine business deals but disguised bribes to secure government favours. The chargesheet invokes IPC Sections 120B (criminal conspiracy), 420 (cheating), 409 (criminal breach of trust), and provisions of the Prevention of Corruption Act.
For Jagan, who termed the allegations “politically motivated,” the VANPIC case is part of a wider set of corruption probes against him dating back to 2011. It continues to hang over his political career and remains a frequent flashpoint in debates over governance in Andhra Pradesh.
The case has had a winding path. In 2022, the High Court initially quashed proceedings against VANPIC, saying the trial court had not justified its decision. When the CBI appealed, the Supreme Court sent the matter back for review. After rehearing, the High Court has now upheld VANPIC’s inclusion, bolstering the prosecution.
Alongside the criminal case, the ED attached nearly 11,804 acres of project land under the PMLA. Later, the High Court ordered the release of parts of this land—first 1,416 acres and later more—citing flaws in the ED’s attachment orders. While this offered limited relief to VANPIC, it did not affect the criminal charges.
With the High Court’s ruling, VANPIC and its promoters will face trial along with Jagan. The judgement may shape both Andhra Pradesh’s political discourse and its corporate history.
The VANPIC saga, once touted as a game-changing industrial project, now stands as one of the state’s most controversial ventures. The trial will decide whether it was a bold development dream gone wrong or a symbol of entrenched corruption.
(Edited by Majnu Babu).
