HYDERABAD: In a significant legal victory, Andhra Pradesh former Chief Minister YS Jagan Mohan Reddy has secured a favourable verdict from the National Company Law Tribunal (NCLT) in an ongoing family dispute involving ownership of shares in Saraswati Power & Industries Pvt. Ltd.
The case pitted Jagan against his mother YS Vijayamma and sister YS Sharmila, amid a backdrop of strained personal and political ties.
The dispute originates from a 2021 gift deed, through which Jagan and his wife YS Bharathi, transferred their shares in Saraswati Power to Vijayamma.
At the time, the transfer was described as a temporary measure due to unresolved legal issues surrounding some family assets. The shares were to be formally divided once those legal concerns were addressed.
This arrangement followed a 2019 memorandum of understanding (MoU) between Jagan and Sharmila, which outlined a 60:40 division of the family’s assets in favour of Jagan.
The agreement covered various holdings, including stakes in Saraswati Power, Bharathi Cements, Sakshi Media, and a residence in Yelahanka.
However, the family’s internal dynamics changed dramatically as political differences escalated, particularly after Sharmila launched her own political party and openly opposed her brother.
Citing a complete breakdown in personal relations, Jagan filed a petition with the NCLT seeking to revoke the gift deed and block the transfer of shares to Sharmila.
In his petition, Jagan asserted that the gift was made out of familial affection and not intended for further redistribution, especially in light of the political fallout.
He stressed the pivotal role he and his wife played in building Saraswati Power, arguing that the shares should not be transferred to Sharmila without his explicit consent.
He also accused Vijayamma of acting beyond the scope of the original gift deed by attempting to pass the shares to Sharmila.
The NCLT found merit in Jagan’s arguments, issuing an order to stay the transfer of shares and rejecting the counterclaims presented by Vijayamma and Sharmila.
The tribunal’s decision effectively halts any further action on the share transfers, at least for the time being.