HYDERABAD: YSR Congress Party (YSRCP) chief and former Andhra Pradesh chief minister YS Jagan Mohan Reddy has approached the National Company Law Tribunal (NCLT), challenging the transfer of shares of Saraswati Power Industries to his sister YS Sharmila. Jagan argued that the share transfer, facilitated by their mother YS Vijayalakshmi, was illegal as the gift deed process remained incomplete.
Jagan’s legal team, led by senior advocate S Niranjan Reddy, contended that while an MoU was signed in August 2019 to transfer shares out of love and affection, the agreement was later cancelled due to disputes. Despite this, Vijayalakshmi allegedly transferred the shares to Sharmila in breach of company laws. He claims that no valid transfer forms, documents, or signatures were provided, making the transaction void.
The legal dispute revolves around 51.01% of Saraswati Power shares, initially held by Sandur Power Company and Classic Realty, where Jagan’s wife, YS Bharathi, is a director.
The shares were transferred to Vijayalakshmi in 2021, but Jagan asserts that the necessary share certificates were never physically handed over, rendering the transaction invalid.