Nimesh Kampani can now think of coming back to India. The country’s best-known investment banker and chairman of JM Financial has been living in Dubai for the last four months.
The Supreme Court on Thursday gave him interim protection from arrest. He was in Dubai to avoid arrest following allegations that Nagarjuna Finance, a Hyderabad-based company with which Kampani was an independent director in the 1990s, defaulted on payments worth Rs 100 crore to thousands of investors.
Earlier, the Andhra Pradesh High Court had refused to grant anticipatory bail to Kampani, who has been charged for his association with the company as an independent director between 1998 and 1999. The police had also issued a “look-out notice” for him.
A bench headed by Chief Justice of India K G Balakrishnan gave relief to Kampani after senior counsel Harish Salve pointed out that the offences alleged were actually committed after he left the company.
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.
Nagarjuna Finance is being investigated for failing to return money collected from about 85,000 depositors.
He has been sought to be made an accused under the Andhra Pradesh Depositors Act after a period from 1999, but his lawyers have argued that NFL has been charged for defaulting payments during the period 1999-2008 much after Kampani had resigned from Board.
When contacted his son Vishal Kampani refused to comment.