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Jagan appeals to NCLT to annul transfer of his, wife’s shares in company to mother
Jagan filed an interim petition in the NCLT, Hyderabad branch, on Thursday stating that his mother already owned 12,174,207 equity shares, accounting for 48.99% in Saraswati Power and Industries
YSR Congress party president and former Andhra Pradesh chief minister YS Jagan Mohan Reddy appealed to the National Company Law Tribunal (NCLT) to annul the transfer of his shares and that of his wife YS Bharati Reddy in the Saraswati Power and Industries Pvt Ltd in the name of his mother YS Vijayalakshmi, people familiar with the matter said on Friday.
Jagan filed an interim petition in the NCLT, Hyderabad branch, on Thursday stating that his mother already owned 12,174,207 equity shares, accounting for 48.99% in Saraswati Power and Industries. But on July 6, 2024, she had transferred the remaining 12,676,294 equity shares, which were held by Jagan and Bharati, in her name on July 6, 2024, without his consent.
He recalled that in 2021, he had executed a gift deed in favour of his mother, transferring his share and that of his wife in her mother’s name with a condition that the gift deed would be implemented and executed only after the adjudication of the court cases pending against him.
“But no actual transfer of shares took place as no share transfer forms were executed by me and my wife and the gift deed executed in favour of Vijayalakshmi was a mere manifestation of the intent to transfer the shares at a future date,” he said in the petition.
Jagan alleged that his sister YS Sharmila, presently president of Andhra Pradesh Congress Committee, was the mastermind behind the illegal transfer of shares in the name of his mother. “Due to personal and political differences, she manipulated our mother to facilitate the transfer of shares,” he said.
Jagan said that Sharmila did not invest in any company, nor was she a partner in the management of his companies. She did not take responsibility for any losses, and did not face any legal cases related to the companies. “Yet, she was trying to use our mother as a scapegoat to seize their shares,” he said.
He accused Sharmila of manipulating documents with backdated records, fabricated paperwork, and false affidavits to commit fraud. “She is trying to seize my assets,” he added.
“I can understand my mother’s agony on being caught up in the Saraswati Power shares controversy. I have all my respect towards my mother, but I have filed the petition to confront my sister’s illegal acts,” he said.
The NCLT deferred the case to April 3 for next hearing, after asking the respondents to counter Jagan’s affidavit.
On February 28, Vijayamma said that her daughter Sharmila was in no way connected with the transfer of shares but Jagan was unnecessarily dragging her name into the controversy. She submitted an affidavit to the NCLT saying that there was no transfer of Saraswati shares in the name of Sharmila.
Vijayamma told the tribunal that she had the sole rights of Saraswati power shares. “Jagan in his dispute with Sharmila for assets, is making me run around the courts. It is not fair on part of Jagan and Bharati to put me through this hardship,” she said.
She made it clear that the purchase of Saraswati shares and other shares received through gift deed were transferred in her name and that she did not transfer any shares in the name of Sharmila for vested interests.
Sharmila could not be reached to react on Jagan’s allegations.
