In a notable legal development, Andhra Pradesh Chief Minister Y.S. Jagan Mohan Reddy has secured a favorable verdict from the National Company Law Tribunal (NCLT) in a dispute involving his mother Y.S. Vijayamma and sister Y.S. Sharmila, over the ownership of shares in Saraswati Power & Industries Pvt. Ltd.
The dispute traces back to a gift deed through which Jagan had previously transferred his and his wife Bharathi’s shares in the company to his mother, Vijayamma. However, citing a breakdown in personal relations and political differences, Jagan filed a petition with the NCLT to revoke the gift deed and halt the transfer of shares to Sharmila.
In Details:
In 2019, during Jagan’s tenure as Chief Minister, he and Sharmila had signed a Memorandum of Understanding (MoU) to divide their family assets. According to the agreement, Jagan was to receive 60% of the assets, while Sharmila would receive 40%. The MoU included the transfer of shares in Saraswati Power, as well as properties like a residence in Yelahanka, stakes in Bharathi Cements, and equity in Sakshi Media.
In 2021, Jagan and his wife executed a gift deed, transferring their shares in Saraswati Power to Vijayamma. They stated this was a temporary arrangement due to legal implications surrounding some of the assets, and that formal division would happen later when all legal issues were resolved.
However, following political tensions, especially with Sharmila entering politics independently and opposing Jagan as the Chief Minister sought to withdraw from the earlier agreement. In his petition to the NCLT, Jagan argued that his decision to gift shares was purely out of affection and that circumstances had changed. He also emphasised that he and his wife were instrumental in the growth of Saraswati Power, and thus the shares could not be transferred to Sharmila without his consent.
He further contested that Vijayamma, by transferring the shares to Sharmila, had acted beyond the intended purpose of the gift deed and requested a stay on the transfer.
NCLT Verdict Favours Jagan
The NCLT sided with Jagan’s arguments, ordering a stay on the transfer of shares to Vijayamma and Sharmila. The tribunal dismissed the counter-arguments made by the mother and daughter, effectively halting any further action on the share transfers for now.
Legal experts suggest that Vijayamma may consider challenging the order in the High Court. This verdict marks a significant legal win for Jagan Reddy in what has become a deeply personal and public family dispute. What began as a gesture of familial affection has now turned into a complex legal and political entanglement.
