The National Company Law Tribunal (NCLT), while hearing YSR Congress Party president Y. S. Jagan Mohan Reddy’s petition to cancel the transfer of shares in Saraswati Power and Industries to his mother Y S Vijayamma and sister Y S Sharmila, made critical remarks against him.
The NCLT bench, comprising Judicial Member Rajeev Bharadwaj and Technical Member Sanjay Puri, expressed displeasure at Jagan’s statement that his “love and affection” for his sister had ended because she was claiming rights over the properties.
“How can love and affection change like the weather?” the bench questioned.
The tribunal also criticized the fact that Jagan was legally fighting his own mother.
“While India is fighting Pakistan at the borders, here a son is fighting his mother,” the bench observed.
Lawyers representing Saraswati Power and Industries argued that Jagan had no legal standing in the matter after having gifted the shares to his mother. They maintained that a gift, once made, cannot be revoked unilaterally without mutual consent, as stated in the Memorandum of Understanding (MoU), and that the share transfer followed due legal process and notarization.
The bench questioned whether internal family disputes should have any bearing on company decisions and emphasized the need to uphold corporate law.
Jagan’s counsel claimed the share transfer was fraudulent and incomplete.
According to their argument, on June 2, 2021, the company’s annual returns reflected that shares in Sandur Power and Classic Realty had been transferred to Vijayamma, raising her shareholding to 48.99%. However, in July 2021, affidavits were submitted claiming the share certificates were missing.
Jagan’s side argued that he initially made the gift out of affection but revoked the MoU after Sharmila joined opposition politics and made allegations against him.
As per Section 122 of the Transfer of Property Act, a gift is considered complete only upon physical delivery of the asset.
After hearing all arguments, the tribunal adjourned the matter to May 30 for the next hearing.