It may be recalled that Nimmagadda was arrested in connection with the Vanpic scam that has ramifications with the illegal assets case of Y S Jaganmohan Reddy.
Nagarjuna met Nimmagadda during the Mulaqat time. The actor met Nimmagadda earlier in June, July and October. In July he met Nimmagadda and gave him Prasadam of Shirdi Sai Baba. He had told the media that he wanted his friend to come out of the travail.
Then reports claimed that Nagarjuna had invested in the Vanpic projects. One English newspaper wrote that Nagarjuna had invested heavily in the Matrix Export Holdings Pvt Ltd. of Nimmagadda Prasad.
According to that report, Matrix Export Company mentioned that Nagarjuna owned two lakh shares of the value of Rs 10 each in the balance sheet submitted to the Registrar of Companies. The newspaper said Nagarjuna tried to withdraw his shares. Whereas in Maa TV, it was said Nagarjuna, Nimmagadda and Chiranjeevi owned 80 percent of the shares. Of these, 30 percent were purchased by Sony Pictures Television Company in April last. Nimmagadda is the chairman of Maa TV.
