Hours after reports surfaced about YSR Congress party president Y S Jagan Mohan Reddy moving the National Company Law Tribunal (NCLT) to take back the shares allotted to his mother and sister, the YSRCP quickly moved to manage the damage, recognizing that the issue could paint Jagan in a negative light.
In a report circulated within YSRCP social media circles, Jagan’s petition was linked to attempts by his political rivals to have his bail canceled in the quid pro quo case being investigated by the Central Bureau of Investigation (CBI).
The YSRCP social media claims suggested that Jagan's companies and their shares were attached by the Enforcement Directorate (ED) in connection with the case, and any transfer of shares could be seen as contempt of court, potentially resulting in the cancellation of his bail.
By moving the NCLT, Jagan sought to preempt his rivals’ alleged conspiracy.
The report further explained that Jagan and his wife Bharati had no obligation to transfer shares to his mother or sister, as the companies were not ancestral properties but personal assets.
These assets, including Saraswati Power, are currently under CBI attachment, which means they cannot be sold or transferred. However, out of affection, Jagan had signed an MoU with his mother and sister, transferring thousands of shares to them.
The MoU stipulated that these transactions would only be completed after the resolution of the cases against him.
With Sharmila now turning into a political rival and making allegations against him, Jagan decided to cancel the agreement and retrieve the shares.
As Sharmila sought to acquire Vijayamma’s shares, Jagan also decided to take back the shares given to his mother to avoid legal complications.
Since the MoU couldn't be canceled unilaterally, Jagan had to seek NCLT's permission to withdraw the share allotment. The YSRCP report indicated that if Sharmila reconciled with Jagan and regained his trust, there was a possibility he could return the shares to her in the future.
