Jagan to NCLT: Get Back Share Transfers From Vijayamma, Sharmila
Hyderabad:Former Andhra Pradesh chief minister Y.S. Jagan Mohan Reddy approached the National Company Law Tribunal (NCLT) seeking the annulment of the transfer of around 51 per cent of shares belonging to him, his wife Bharathi Reddy and their companies in Saraswati Power and Industries Private Ltd to his mother Y.S. Vijayamma and his sister Y.S. Sharmila.
According to Jagan Mohan Reddy, the transfer of shares on July 6, 2024, was illegal and without complying with the sine qua provisions of the Companies Act.
Jagan Mohan Reddy, his wife Bharathi Reddy, and Classic Realty Company Ltd together filed the petition seeking to annul the transfer of 126,76, 294 shares in Saraswati Power Vijayamma, who already have 121,74,207 shares in the same company by holding 48.99 percentage of shares.
The petitioners stated that they played a significant role in the growth of Saraswati Power and Industries and they signed a Memorandum of Understanding (MoU) on August 21, 2019, to allocate shares to Vijayamma, Sharmila and others. They alleged Sharmila, Vijayamma, and others of transferring shares illegally in violation of the MoU signed earlier.
"This transfer is clearly in derogation of the express understanding, intent, and text of the MoU and other documents exchanged between the parties,"
Jagan Mohan Reddy and Bharathi stated in the petition that the share transfers were carried out through a board resolution, which was done without norms or the original share certificates, as required under Section 56 of the Companies Act, 2013.
In the petition, they also made Janardhana Reddy Chagari, Yashwanth Reddy Kethireddy, Registrar of Companies in Telangana and others as respondents.
Jagan Mohan Reddy said that the shares in the company are not ancestral and were transferred to his sister Sharmila purely out of love and affection.
Though the MoU was entered in 2019 to transfer his shares to Sharmila, it also clearly mentioned that transfer will be in future days.