The ongoing feud between YS Jagan and his sister Sharmila over family properties and assets has taken a dramatic turn, now escalating into a legal battle. Jagan has filed a petition with the National Company Law Tribunal (NCLT) in Hyderabad, accusing Sharmila of engaging in illegal activities to assert her interests.
The crux of the dispute revolves around shares of Saraswati Power, with Jagan claiming that Sharmila is using their mother, Vijayamma, as a front for her actions. Jagan alleges that Sharmila’s greed led to the unlawful transfer of shares, despite their mother’s involvement. He stresses that his petition is not driven by personal animosity but rather to protect the family’s assets and prevent unlawful actions.
Jagan, along with Bharathi Reddy and Classic Realities, is seeking the NCLT’s intervention to amend the shareholder register and restore the shares. He contends that Sharmila, who has not invested in the company or participated in its management, is attempting to seize the shares by leveraging their mother’s position. Jagan emphasizes that under Section 59 of the Companies Act, the tribunal can intervene if shares are transferred without proper legal procedures.
Additionally, Jagan asserts that Sharmila’s attempts to be removed from the petition are part of a larger, calculated strategy. He claims that she is justifying the illegal transfer of shares by citing gift deeds executed under her pressure, but he argues that the gift deed process was never completed. The shares, according to Jagan, were never officially transferred, as the certificates were never handed over, and the process was never finalized.
While the family dispute has certainly fueled this legal clash, Jagan clarifies that his primary concern is the fraudulent transfer of assets. He highlights that he had initially planned to transfer his shares to Sharmila out of affection, formalized through a memorandum of understanding (MoU). However, due to her deceitful actions, this plan has been rescinded.
Despite Sharmila not being a shareholder, director, or involved in Saraswati Power’s operations, Jagan alleges she has attempted to manipulate documents and engage in fraudulent activities. The NCLT hearing, scheduled for April 3, will address the petition and determine the course of action for the disputed shares.