YSR Congress party president and former Andhra Pradesh chief minister Y S Jagan Mohan Reddy has made it clear that there is no question of transferring any assets, including the shares on Saraswati Power Ltd, to his sister and presently AP Congress Committee president Y S Sharmila.
Jagan informed this to the Chennai bench of the National Company Law Appellate Tribunal (NCLAT) on Friday.
He said he had decided not to implement earlier agreements to transfer assets Sharmila, citing damage to his political and personal reputation.
In submissions made before the tribunal, Jagan stated that a Memorandum of Understanding (MoU) and share transfer agreements were executed on August 31, 2019, out of “affection for his sister” and with the intention of transferring assets in the future.
However, he said the decision was later withdrawn after Sharmila allegedly caused harm to his reputation through her political actions and personal conduct.
Jagan further informed the tribunal that it was earlier agreed that the transfer of assets and shares would be implemented only after the completion of all legal proceedings, including cases related to the Enforcement Directorate’s (ED) appeal in the Telangana high court seeking attachment of Saraswati Power Limited’s assets.
Jagan categorically asserted that all the assets in question were self-acquired and that Sharmila has no legal right over them.
He alleged that without any legally valid documents, the Saraswati Power Limited board had unilaterally passed a resolution transferring shares based solely on letters written by his mother Y S Vijayamma and Chagari Janardhan Reddy.
Challenging this resolution, he said he had approached the Hyderabad bench of the National Company Law Tribunal.
The NCLT, after hearing the matter, reportedly set aside the board’s resolution and ordered restoration of shareholding.
As per the order, the restored shareholding structure would be: Y S Jagan Mohan Reddy – 29.88%, Bharathi Reddy – 16.30%, Classic Realty – 4.83%, and Y.S. Vijayamma – 48.99%.
Jagan also questioned the maintainability of the appeal filed by Saraswati Power Limited against the NCLT order, arguing that the company had no locus standi as it had suffered no loss due to the order.
He contended that the company, which ought to remain neutral, could not legally represent the interests of Vijayamma and Chagari Janardhan Reddy, nor defend an illegal action of its board of directors.
He further stated that although gift deeds were executed in favour of Vijayamma by himself, Bharathi Reddy, and Classic Realty, Saraswati Power Limited had no role in those transactions, yet was improperly arguing on their behalf.
Jagan pointed out that the company remained silent for three years after the share transfer agreement and lacked valid reasons to now justify the transfers.
He requested the tribunal to vacate the stay granted on the NCLT’s order restoring the original shareholding.