YSR Congress Party president and former Andhra Pradesh Chief Minister Y S Jagan Mohan Reddy has informed the National Company Law Tribunal (NCLT) that the gift deed he executed in favor of his mother, Y S Vijayamma, transferring shares in Saraswati Power and Industries, is no longer valid.
In a fresh affidavit filed before the NCLT on Thursday, Jagan’s counsel, senior advocate S. Niranjan Reddy, argued that the gift deed was never fully executed.
“Jagan still holds the share certificates and the transfer forms, and therefore, the transfer is not legally valid,” he stated.
Jagan, along with his wife Bharathi Reddy and Classic Realities, has filed a petition seeking the restoration of their names as shareholders in the company’s register.
The case revolves around a dispute over Jagan’s 49% stake and the alleged unauthorized transfer of the remaining 51%.
According to Niranjan Reddy, the controversy began with an illegal share transfer. He noted that an understanding was reached between Jagan and Vijayamma on August 31, 2019.
He further mentioned that the Enforcement Directorate (ED) had previously attached assets related to alleged irregularities during the tenure of Jagan’s father, the late Y. S. Rajasekhara Reddy, as Chief Minister of united Andhra Pradesh.
“The Telangana High Court had ordered status quo on December 2, 2019. However, despite this directive, shares were transferred on July 6, 2023, to Vijayamma and Chagari Janardhan Reddy in violation of the court’s order,” he argued.
In a separate affidavit, Y S Sharmila, Jagan’s sister, claimed she was not involved in the matter. However, Jagan asserted that she played a key role in the unauthorized transfer of shares to their mother.
The tribunal has adjourned the case to May 7. Senior advocates K Vivek Reddy and Maharshi Vishwaraj appeared on behalf of Vijayamma and Sharmila.