Nimesh Kampani, India's top dealmaker and the head of the country's top investment bank, JM Financial, on Wednesday received a reprieve from the Andhra Pradesh High Court. Justice Bhanu admitted Kampani's petition and stayed all criminal proceedings against him as well as the 'look-out' notice issued by Interpol. Prominent Senior Counsel, C. Padmanabha Reddy, who has also appeared for Satyam's Ramalinga Raju, argued on behalf of Kampani and was briefed by Niranjan Reddy.

The Andhra Pradesh government had initiated criminal proceedings against Kampani and others last year when it was discovered that Nagarjuna Finance Limited, held by K.S. Raju and his family, had failed to return nearly Rs. 100 crore to its depositors. Kampani, who was a non-executive director (independent director) in the company, also came under the scanner for NFL's failure to return the money, although he had resigned as a director in April 1999.

Kampani's battle has taken various twists and turns. He first made an application for anticipatory bail in February 2009, and also asked for quashing criminal proceedings against him. The AP High Court rejected his application, and he filed an appeal before the Supreme Court. Senior Counsel Harish Salve represented Kampani in the SC, but failed to obtain a favourable verdict. Kampani once again filed an application for anticipatory bail in August 2009, which was rejected yet again by the AP High Court.

After Satyam, the Nagarjuna Finance scam has raised critical questions about the legal implications of being an independent director on the board of a company. Kampani's functions as an independent director are being questioned ten years after his resignation from the Board of Directors. India Inc. has been vocal in its disapproval of the hard legal battle Kampani has been forced to fight for the past year, terming it "harassment". There are fears that Kampani's persecution may lead to a shortage of independent directors in the corporate sector, which is already starved of quality directors.

AZB & Partners are the corporate legal counsels for Nimesh Kampani.  Managing Partner Zia Mody has also expressed her displeasure over the way the Kampani matter has been investigated. Speaking to Tehelka, she says "The issue is about a default and about who is responsible for the default. If someone is unnecessarily dragged over a malpractice in which his involvement is not even proven, it would set a wrong precedent and make professionals think twice before joining boards of companies".

In an interview with Money Control, Somashekhar Sundaresan, Partner at J. Sagar Associates, also spoke out against the handling of the Kampani case. "So at some level, legislatures need to think through what they are doing. Whether a person is in charge or not is a question of fact, which has to be demonstrated by trial. A trial will clarify who is in charge. But if a person who is not holding office at all, I mean that doesn't take a trial to prove who went on to a board when and who got off a board and what time. So, you don't try facts that are so clearly apparent. There is more than meets the eye in this case."

Forbes, in its list of richest people, has ranked Kampani at 42 in India and 897 in the world. His personal wealth is valued at $1.3 billion. Yet, ironically, he has been forced to hide in Dubai for months before receiving a reprieve from the courts.