The Supreme Court directed industrialist Nimmagadda Prasad and four associated companies to furnish an additional Rs. 200 crore as security. This comes after the case, which concerns the enforcement of a UAE court decree in favour of the Ras Al Khaimah Investment Authority (RAKIA). The respondents will provide the security within two weeks.
Delivering the judgement, Justice Mohana directed the commercial courts to decide on all the pending applications in the case within four months. The court said, “ The present value of the UAE decree, including interest up to July 23, 2026, was Rs. 949.96 crore. The Respondents are directed to furnish an additional Security of Rs. 200 crores with the Registry of this Court, over and above the sums/assets already deposited within two weeks.”
The bench clarified that deposits will be subject to the outcome of the Execution Proceedings pending before the Commercial Courts of Hyderabad and Ranga Reddy,
The bench further said, “The question as to whether NP's (Prasad's) family-controlled entities constitute a unified structure whose assets can be reached to satisfy the decree, and the issue of lifting the corporate veil etc. is left open to be agitated before and decided by the Commercial Courts of Hyderabad and Ranga Reddy in the pending Execution proceedings.”
The Supreme Court further raised questions on asset ownership and corporate structure to the Commercial Courts in Hyderabad and Ranga Reddy. These courts will determine whether entities controlled by Prasad's family form a unified structure and whether their assets can be used to satisfy the decree.
The court also directed the Commercial Courts to decide the pending execution petitions and related applications within four months. The additional security will remain subject to the outcome of those proceedings.
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