Former Andhra Pradesh leader and YSRCP head YS Jagan Mohan Reddy filed a complaint with the National Company Law Tribunal (NCLT) against his sister and Andhra Pradesh Congress leader YS Sharmila for allegedly transferring shares of Saraswathi Power and Industries Pvt Ltd unlawfully to her and her mother Vijaya Lakshmi’s names.
The application has been submitted according to Section 59 of the Companies Act, which pertains to correcting the membership register. It also lists the former directors of Saraswati Power, along with the registrar of companies in Telangana and the regional director of the South-East region.
A spokesperson from Jagan’s office stated that the shares were not inherited but were given to his mother as a gesture of love and affection. However, the property is currently tied up in a legal case and cannot change ownership until the legal matters are settled. Despite being aware of this fact, she still went ahead and unlawfully transferred the shares under her name. Jagan had no choice but to inform the court to demonstrate his honesty.
A statement from Sharmila’s office claimed that the allegations made by Jagan in the petition are untrue and deceptive. Jagan Mohan Reddy had already gifted all the shares to Vijayamma (his mother Vijaya Lakshmi) by transferring them in her name through a deed of gift. Currently, he believes Vijayamma might pass them on to her sister Sharmila, prompting his efforts to retrieve and nullify the gift deed. We will provide evidence in response to the NCLT notice.
Jagan Mohan Reddy submitted a request to the NCLT in Hyderabad on September 9, requesting the reversal of the transfer of 74,26,294 equity shares and 40,50,000 shares from Bharti to his mother, as well as 12,00,000 shares from Classic Realty Pvt Ltd. He additionally requested for the company’s register to be fixed, his name to be reinstated as a shareholder, and the shareholding details of other respondents to be corrected.
He expressed his desire to give the shares to her as a gesture of “pure love and affection”. He mentioned that the transfer would occur pending the resolution of the investigations against him by central agencies and the release of attached properties.
Jagan expressed his astonishment upon discovering on July 19 that Saraswathi Power had transferred both his and Bharathi’s shares to his mother on July 6, in his petition. The petition claimed that the transfer of shares was the result of a fraudulent breach of the law.
The petition expresses Jagan’s decision not to transfer the shares/properties as planned in the MoU and the Gift DD due to the lack of love between the siblings. Jagan and Sharmila have been having disagreements since she attempted to establish a political presence with her brother. After being disregarded, she relocated to Telangana and established the YSR Telangana Party on July 8, 2021, before eventually merging it with the Congress the following year. She has been declared ineligible from the party by the Congress.