Sibling rivalry: Jagan accuses Sharmila of illegally transferring company shares
Former Andhra Pradesh Chief Minister YS Jagan Mohan Reddy has moved a legal petition against his sister, YS Sharmila, and their mother, YS Vijayamma over the alleged unauthorized share transfers in Saraswati Power and Industries Private Limited. Reddy alleged that Sharmila transferred the shares without consent, breaching an agreement subject to legal clearances. The National Company Law Tribunal (NCLT) in Hyderabad has fixed further hearings for November 8, 2024.
Reddy seeks legal rectification of company's register
Reddy's petition, filed under Section 59 of the Companies Act 2013, aims to correct the company's register of members. He claimed that the share transfers were made in July 2024 without due process, breaching Section 56 of the Act. "YS Sharmila, without gratitude or consideration for my well-being, has taken actions that have deeply hurt me," Reddy said in his filing.
Family discord linked to father's legacy
The conflict dates back to a 2019 when a Memorandum of Understanding (MoU) was signed between the two. Reddy had initially planned to gift shares to Sharmila as a goodwill gesture but later retracted over political differences. The rift deepened during Andhra Pradesh elections when Sharmila joined the Congress and publicly criticized Reddy. Her decision to merge her party with the Congress intensified their political rivalry, while her independent activities in Telangana further widened the divide.
Reddy's petition highlights financial support to Sharmila
In his petition, Jagan stated that "purely out of love and affection, he had planned to transfer shares of Saraswati Power and Industries through a gift deed to Sharmila at a later date. But he has now expressed his desire to revoke the MoU, saying, "In view of this changed situation, I wanted to formally intimate you and put you on notice that I have no further intent to act upon my original intent as expressed in the MoU."
No love left between the siblings: Petition
"It is humbly submitted that to the utter shock and surprise of the petitioners, respondent No. 1 (Saraswati Power)...has transferred the entire shareholding of petitioners No. 1 and 2 (Jagan and his wife) in favour of respondent No. 2 (Sharmila) and the entire shareholding of petitioner number three (Classic Realty, owned by the family), in favour of respondent No. 3 (Vijayamma)," Jagan alleged. Due to actions by his sister, he has decided not to proceed as planned, the petition read.
