Jagan wants to cancel shares’ transfer to sister, mother

Vijayawada : The differences in the YS Rajasekhara Reddy family deepened with YSRCP president Y S Jagan Mohan Reddy filing a petition in National Company Law Tribunal, seeking an order to annul the transfer of shares in Saraswati Power and Industries Private Limited to his sister Y S Sharmila and mother Y S Vijayamma.

Jagan and his wife Bharati filed the petition in the NCLT against Andhra Pradesh Congress Committee (APCC) president Sharmila, and Vijayamma.

The petitioners urged the NCLT to cancel, annul and nullify the “illegal” transfer of shares in Saraswati Power Company, to Sharmila, Vijayamma and two other respondents. They argued that the shares were transferred “illegally” without complying with the sine qua provisions of the Companies Act, 2013 relating to the transfer of shares.

Stating that they played a significant role in the growth of Saraswati Power and Industries, the petitioners said they signed a Memorandum of Understanding (MoU) on August 21, 2019, to allocate shares to Sharmila, Vijayamma and others.

The petitioners accused Sharmila, Vijayamma, and others of transferring shares illegally in violation of the MoU signed earlier.

“This transfer is clearly in derogation of the express understanding, intent, and text of the MoU and other documents exchanged between the parties.”

Jagan and Bharati stated in the petition that the share transfers, carried out through a Board resolution dated July 6, were done without submission of duly executed share transfer forms or the original share certificates, as required under Section 56 of the Companies Act, 2013.

Jagan also stated in his petition that there is no love left between him and his sister following a series of actions by the latter.

The petition, filed under Section 59 of the Companies Act, which deals with the rectification of the register of members, will come up for hearing at NCLT on November 8.

Janardhana Reddy Chagari, Yaswanthreddy Kethireddy, Registrar of Companies in Telangana and the regional director of South East Region have been named respondents.

The NCLT has issued notices to all respondents and scheduled the hearing on November 8.

The former chief minister also mentioned that his intention to transfer certain properties and shares to Sharmila, which was expressed in an MoU dated August 31, 2019, was based purely on love and affection.

He, however, stated that he was immensely agonized by the turn of events. “Having realised that there is no love left between the two siblings, decided not to proceed with the transfer of shares/properties.”

Jagan mentioned in his plea that he originally intended to allocate shares to Sharmila as an expression of ‘sisterly affection’ but he withdrew the offer due to her recent political opposition to him.

“YS Sharmila conducted a series of actions that have deeply hurt me. These actions, coupled with untrue and false statements made publicly, have been politically opposed to me and have caused deep personal disrepute,” Jagan said.

Sharmila has been “targeting” her brother ever since she joined the Congress early this year and was appointed APCC president. She unsuccessfully contested from Kadapa Lok Sabha constituency against YSRCP candidate and her cousin Y S Avinash Reddy in the recent elections.