VIJAYAWADA: Andhra Pradesh Congress Committee president YS Sharmila on Thursday scoffed at the reaction of her brother and YSRC chief YS Jagan Mohan Reddy on the ongoing dispute between the two siblings over transfer of shares in the family-owned Saraswati Power and Industries to her and her mother Vijayamma.
Speaking to media here, she quipped, “My view is that disputes should be resolved amicably at home. But, you dragged mother and me to court while claiming it is common in all families. This is not common, Jagan sir.”
It is pertinent to note that Jagan moved the National Company Law Tribunal last month seeking to cancel the transfer of shares. Sources close to Sharmila informed this newspaper that contrary to Jagan’s claims, the Enforcement Directorate (ED) did not attach shares of Saraswati Power and Industries.
“It only attached company land worth Rs 32 crore. Shares of the company were never attached and could be transferred anytime. The ED attachment of any company’s property never stopped the transfer of shares of that company. There are many companies even in stock markets that have their lands or assets attached, and yet are freely traded and shares transferred,” the sources claimed.
To the YSRC argument that transfer of Saraswati shares is illegal and could result in the cancellation of Jagan’s bail, the sources questioned how did he sign a Memorandum of Understanding (MoU) in 2019 stating that all shares will be transferred to Sharmila immediately. Posing a series of questions, the sources also wondered how did Jagan allow his mother Vijayamma to buy the company’s shares held by Classic and Sandur for Rs 42 crore in 2021 and how could he sign and gift his and his wife’s shares to Vijayamma.
They further pointed out that the Appellate Tribunal of the ED, while allowing an appeal on July 16, 2019, held that the assets of the company were not the proceeds of crime and set aside the ED provisional attachment order. It also held that it did not even have to examine the status of the shareholding in the company as that was not the subject matter before the ED, the sources said.
In a letter to the YSRC president, dated September 12, 2024, Sharmila said Jagan had pledged to transfer all shares in Saraswati Power and Industries, designated to her as per the MoU, immediately following the signing of the document.
My political career is mine by choice, says Sharmila
“However, you failed to fulfil this promise for several years. Furthermore, after our mother acquired shares belonging to Bharathi and Sandur, and following your gifting of the remaining shares -- complete with folio numbers as detailed in the gift deeds signed by both you and your wife -- it is not right on your part to complain and cry foul over it. You executed gift deeds giving full rights over the shares of Saraswati Power to our mother.”
Stating that the MoU is a continuing and binding document, she wrote, “The question of your unilateral withdrawal has no legal significance.” Sharmila further said she will hold Jagan responsible for executing every term outlined in the MoU. Accusing Jagan of asking her to sign a clause that would bind her from speaking against him and Avinash (their cousin brother), she wrote, “My political career is mine by choice and I will not allow you to dictate the terms of my professional conduct.” Terming the condition absurd, she said imposing it to come to a settlement on the discounted MoU was “entirely unreasonable.”
Stressing that her political choices should have no bearing on their father’s instructions for all grandkids to have an equal share in all assets, she said, “As my older brother, it is your responsibility toward my children who are related to you by blood to execute the MoU you signed willingly.”