HYDERABAD: Former AP chief minister and YSR Congress chief YS Jagan Mohan Reddy has contested a share transfer involving Saraswati Power and related companies, calling it fraudulent and legally invalid. The case, currently being heard by the NCLT, revolves around the alleged unauthorised transfer of shares from Jagan and his wife YS Bharathi Reddy to his daughter YS Sharmila through her mother YS Vijayamma.
In a petition filed under Section 59 of the Companies Act in September 2024, Jagan has named Sharmila, Vijayamma, Janardhan Reddy, Yashwanth Reddy, the Regional Director of the South East Region, and the Registrar of Companies as respondents. Classic Realty Private Limited, along with YS Bharathi, is listed as a co-petitioner. NCLT bench comprising Judicial Member Rajiv Bharadwaj and Technical Member Sanjay Puri heard the case.
Senior advocate S Niranjan Reddy, appearing for Jagan, argued that a 51% stake in Saraswati Power is jointly held by Jagan, his wife Bharathi, and Classic Realty. An MoU was signed between Jagan and Sharmila on August 31, 2019, with Vijayamma as a witness. The agreement stated that a portion of Jagan’s assets, not considered ancestral, would be transferred to Sharmila out of love and affection, but only after the resolution of pending CBI and ED cases.
In June 2021, a share purchase agreement and gift deed were executed, transferring 49% of shares in Classic Realty (71 lakh shares) and Sandur Powers (46 lakh shares) in Vijayamma’s name.