In a significant court victory, Y.S. Jagan Mohan Reddy has been granted a favorable judgment by the National Company Law Tribunal (NCLT) in an acrimonious family feud between his sister Y.S. Sharmila and his mother Y.S. Vijayamma. The dispute centers on control and transfer of shares in Saraswati Power Corporation, an important business legacy of the Reddy family.
In 2021, Jagan had donated his shares in the company voluntarily to his mother out of love for family. Later, however, in a shocking turn, he went ahead and filed a plea for cancellation of the gift deed. Jagan had alleged that the political divide between him and his sister, especially her choosing to contest independently against his party, had resulted in a loss of trust. He also said that he and his wife Y.S. Bharathi had played a major role in developing the power company, and therefore, the shares cannot be given away without justification.
The NCLT followed Jagan’s argument, blocking the transfer of shares to Vijayamma and Sharmila. The tribunal rejected their arguments and held that there was merit in Jagan’s position, citing that emotional and financial investments he put into the company couldn’t be ignored.
The origin of this conflict dates back to a Memorandum of Understanding (MoU) in 2019 during the tenure of Jagan as Chief Minister. The MoU was said to have detailed a 60-40 division of family property between Jagan and Sharmila. These included significant holdings in Bharathi Cements, Sakshi Media, the Elahanka mansion, and Saraswati Power Corporation. Things changed, however, when political and personal tensions mounted between the brothers. Jagan backed out of the deal, citing that the situation had changed.
Even though the NCLT ruling is a significant victory for Jagan, this courtroom battle may not be over yet. It has been reported that Vijayamma will most probably approach the High Court, asking to overturn the judgment. As this family drama goes on, it keeps drawing eyeballs from the legal fraternity as well as political analysts nationwide.