Jagan Mohan Reddy got a big relief in Saraswati Power’s share dispute with mother and sister, NCLT gave this decision
Jagan Mohan Reddy, There was a fight between his mother (YS Vijayamma) and sister (YS Sharmila) over the shares of Saraswati Power. Now the decision of the Hyderabad Peeth of the National Company Law Tribunal (NCLT) has come. NCLT has said that former Andhra Pradesh Chief Minister Y. S. Jagan Mohan Reddy had agreed to gift his and his wife’s share to his mother and sister in Saraswati Power and Industries Private Limited, but the real transfer of the stock was never completed. This has brought great relief to Jagan Mohan Reddy. In a way, it is believed to be a decision in their favor. The Hyderabad bench of the National Company Law Tribunal (NCLT) accepted Jagan’s plea and issued instructions in his favor on Tuesday.
Place had requested to cancel the transfer
In a petition filed on September 3, 2024, Jagan shared the share of his and his wife Bharti in Saraswati Power and Industries. He was requested to cancel the “illegal transfer” made in the name of Sharmila and mother Vijayamma. A bench of judicial member Rajiv Bhardwaj and Technical Member Sanjay Puri in his order directed Saraswati Power to improve the register of his members as shareholders in the name of Jagan, Bharti and Vijayamma and inform the company Registrar (ROC) through proper procedure. Jagan, Bharti and Vijayamma have 74.26 lakh (29.88 percent), 41 lakh (16.30 percent) and 1.22 crore shares (48.99 percent) respectively in Saraswati Power, while the remaining shares are with Classic Realty Private Limited.
The transfer not completed legally
The order stated, these (gifts) seem to be formally executed, but the desired transfer has never been legally completed due to non -sending the original share certificate by the donors which is an essential condition for legitimate transfer of the stock. In the absence of this, the company was barred from legally registering the shares in the name of those who were to be transferred. “In the petition, Jagan said that he signed an MoU with Sharmila in which he said that” due to “love and affection” he would transfer his and his wife’s shares in the company as “he” he would transfer his separate sister.
However, it is subject to pending cases in relation to some assets including attachment by the Enforcement Directorate. However, he later expressed his desire to cancel the memorandum of understanding, saying that there is no longer good relations between the two siblings. Sharmila joined Congress in 2023 after differences with her brother. He was made the president of the Congress unit of Andhra Pradesh. In the May 2024 general election, Sharmila contested from Kadappa Lok Sabha constituency, but had to face defeat.
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