Hyderabad: YSRCP chief YS Jagan Mohan Reddy has moved the NCLT, accusing his sister and AP Congress president YS Sharmila of illegally transferring shares of Saraswati Power and Industries held by him and his wife Bharathi on her and their mother Vijayamma’s names.
The feud between Jagan and Sharmiala took a new turn in the form of the legal battle, with the petition filed last month in the Hyderabad Bench of the National Company Law Tribunal being taken up and posted to November for further hearing.
In the petition, Jagan said he entered into an MoU with Sharmila, wherein he said that “out of love and affection,” he would transfer his and his wife’s shares of Saraswati Power and Industries through a gift deed to his estranged sister, subject to pending cases in respect of some properties, including attachments by the Enforcement Directorate.
Jagan, in a letter to his sister, opined that the share transfer without fulfilling the legal obligations and clearance from court would potentially have adverse implications.
He, however, expressed his desire to revoke the MoU, saying, “It is no secret that we are no longer on the best of terms, and 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.”
Jagan said the properties, acquired by their father, former chief minister YS Rajasekhar Reddy and the ancestral ones, were divided among the family members. He intended to transfer the shares (Jagan’s own property) in addition to Rs 200 crore he, directly or through their mother, gave to his sister during the past decade.
The former chief minister, in his petition, said he and Sharmila entered into a MoU on August 31, 2019, wherein he will transfer his and Bharathi’s shares to his sibling at a later date after completing due process “unrelated to any consideration and purely out of love and affection.”
“It is humbly submitted that to the utter shock and surprise of the petitioners, respondent No. 1 (Saraswati Power and Industries) company wide board resolution has transferred the entire shareholding of petitioners No. 1 and 2 (Jagan and his wife, respectively) in favour of respondent No. 2 (Sharmila) and the entire shareholding of petitioner number three (Classic Realty, owned by the family), herein in favour of respondent No. 3 (Vijayamma),” Jagan alleged.
The YSRCP chief said Sharmila, without gratitude and regard to the well-being of her brother, conducted a series of actions that deeply hurt him and that she also made several untrue and false statements publicly.
She also conducted actions that have not only been politically opposed to Jagan but are also blatantly untrue and have caused deep personal dissemination to him, Jagan said in his petition.
“The actions of Respondent No. 2 (Sharmila) herein have strained the relationship between the siblings and have further resulted in melting down of all the love and affection the brother had for his sister,” his petition said.
Due to actions by his sister, there is “no love left between the two siblings”, and he decided not to proceed with his expression of intent to transfer the shares/properties as envisaged under the MoU and gift deed.
After differences cropped up with his brother, Sharmila joined the Congress party earlier this year and was made the president of its Andhra Pradesh unit. She unsuccessfully contested from Kadapa Lok Sabha constituency in the May general elections.
