VANPIC gets major relief from High Court

Hyderabad: Vanpic Ports Pvt. Ltd. and Vanpic Projects Pvt. Ltd., accused in the alleged quid pro quo cases related to AP Chief Minister Y.S. Jagan Mohan Reddy and whose properties were being seized by investigating agencies, received a major relief from the Telangana High Court on Tuesday.

A division bench, comprising Chief Justice Ujjal Bhuyan and Justice Surapelli Nanda, directed Enforcement Directorate (ED) to release 561.1996 acres of land in Prakasam district, which belongs Vanpic Ports Pvt Ltd and  855.7130 acres of land in Prakasam and Guntur districts belonging to Vanpic Projects Ltd that have been attached. Vanpic stands for Vadarevu and Nizampatnam Industrial Corridor

The division bench issued the orders in civil miscellaneous second appeals filed by the firms. They had challenged the provisional attachments by the ED, which was upheld by the appellate tribunal for Prevention of Money Laundering Act in New Delhi.

On the basis of the CBI charge sheet in relation to the Jagan Mohan Reddy cases, the ED in 2014 had provisionally attached  1,416.91 acres of patta land forming part of the Vanpic Project. Thereafter, the adjudicating authority of ED confirmed the provisional attachment.

Aggrieved by the same, Vanpic Ports Ltd and Projects Ltd  preferred separate appeals under Section 26 of PMLA before the appellate tribunal.

While the appeal was being heard, the ED in 2017 provisionally attached 11,804.78 acres of assigned lands forming part of the Vanpic Project and in which both the Vanpic Ports Pvt Ltd and Vanpic Projects Private Limited have interest.

During the pendency of appeal against the provisional attachment  whereby 1416.91 acres of patta land was attached and ED took over physical possession of the entire 13,221.69 acres of land, including 11,804.78 acres.

Vanpic Ports Private Limited is a special purpose vehicle for implementation of Vodarevu and Nizampatnam ports and industrial corridor project, also known as the Vanpic project. It is a government to government project conceptualised by virtue of an arrangement between the then government of undivided Andhra Pradesh and the government of Ras al Khaimah, one of the emirates of the United Arab Emirates.

While directing release of the attached properties, the bench mentioned jurisdictional errors by the ED during the provisional attachments. The bench said that the basic requirements for attachment were absent. It would be illegal, null and void, being without jurisdiction.

The High Court also faulted the appellate tribunal for relegating the firms to the forum of special court to seek de-attachment after itself observing that the trial before the Special Court, if conducted, may take a number of years.