The rift in the family of former chief minister late Y S Rajasekhar Reddy became wide and came out in the open, as his son Y S Jagan Mohan Reddy filed a petition before the National Company Law Tribunal (NCLT), seeking to withdraw his company shares allotted earlier to his mother Y S Vijayalakshmi and sister Y S Sharmila.
According to the latest reports, Jagan, along with his wife Y S Bharati, filed a petition in the NCLT last month to that effect.
He asked the NCLT to invalidate the transfer of 74,26,294 equity shares in Saraswati Power and Industries Private Limited from himself to Vijayamma, 40,50,000 shares from Bharati to Vijayamma, and 12,00,000 shares from another petitioner to other respondents.
He also wants the company's register to be corrected to restore their names as shareholders and to fix the shareholding information of the other parties.
The National Company Law Tribunal (NCLT) has sent notices to all respondents involved and set the next hearing for November 8, 2024.
Apart from Vijayamma, the petition also names Janardhana Reddy Chagari, Yaswanthreddy Kethireddy, and several other respondents, including the Registrar of Companies in Telangana and the Regional Director of South East Region, was filed under Section 59 of the Companies Act.
According to a report published in a local English daily, this provision allows for the rectification of a company's register of members if an individual's name has been entered without sufficient cause or omitted.
Jagan and Bharati argue that they played a crucial role in the growth of Saraswati Power and Industries. They assert that they signed a Memorandum of Understanding (MoU) on August 21, 2019, to allocate shares to Sharmila, but this allocation was never finalised, leading to the current dispute.
According to reports, Jagan's legal filing exposes growing tensions within the YS family. He stated that he had initially planned to give shares to Sharmila out of sibling affection, but withdrew the offer due to her recent political opposition to him.
Jagan mentioned in the filing that there is now a lack of love between him and Sharmila, pointing to a series of her actions that have deeply upset him.
The petition alleges that Sharmila, without showing gratitude and concern for Jagan's well-being, has taken actions that have deeply wounded him, causing personal and political damage.
Jagan also claimed that Sharmila's public remarks and behaviours have been politically driven, causing strain in their relationship to the extent that "all love and affection" between them has disappeared.
The petition primarily focuses on alleged unlawful share transfers in Saraswati Power, which Jagan and Bharati claim occurred in July 2024 without proper documentation and in violation of the previous MoU.
They argue that the transfers carried out through a Board resolution dated July 6, 2024, did not include the essential share transfer forms or original share certificates, which goes against Section 56 of the Companies Act, 2013.
