Kampani faces arrest in Nagarjuna Finance scam as SC quashes petition

13 April 2009

The Supreme Court on Monday quashed a petition filed by financial expert and billionaire Nimesh Kampani to stop criminal proceeding initiated against him in the Nagarjuna Finance scam, thus clearing the way for his arrest.

The Supreme Court bench headed by justice Altamas Kabir, however, allowed Kampani to seek anticipatory bail.

The apex court had on 2 April stayed the arrest of Kampani. He was reportedly hiding in Dubai for a while and moved the Supreme Court in March.

The Mumbai-based investment banker and other executives of the Hyderabad-based non-banking financial company Nagarjuna Finance are under investigation for the firm's alleged failure to return around Rs98.3 crore collected from 85,160 depositors in 1997-98.

Kampani, against whom the Andhra Pradesh police had issued a search circular, was a non-executive director in Nagarjuna Group's non-banking financial company Nagarjuna Finance.

Nagarjuna Finance had collected deposits from the public but failed to meet its commitments to depositors following adverse market reaction towards the company after a setback to its hire purchase business.