The National Company Law Tribunal (NCLT) on Monday took up the petition filed by former Chief Minister YS Jaganmohan Reddy regarding the transfer of shares. It is known that last year, Jagan had filed a petition in the NCLT in Hyderabad regarding the transfer of shares in Saraswati Company.
In this regard, the lawyer representing Jaganmohan Reddy’s mother YS Vijayamma sought time to file a counter-filing, and the next hearing was adjourned to March 6. Jaganmohan Reddy has filed a case against his mother Vijayamma, sister YS Sharmila and Janardhan Reddy for illegally transferring shares in Saraswati Power Company which were in the name of himself, his wife Bharathi and Classic Reality.
In the petition, they stated that they have a total stake of 51.01 percent in Saraswati Power Industries. They said that they had signed a memorandum of understanding on August 31, 2019, to transfer shares to Sharmila in the future.
After that, all the shares in Saraswati Power in the name of Jagan’s Sandur Power Company Private Limited and the shares of Classic Realty, of which Bharti is a director, totaling more than Rs. 1.21 crore, were transferred to Vijayamma on June 2, 2021.
He stated that Vijayamma had transferred the shares which were in her name on behalf of Sharmila. He explained that the remaining shares should be transferred after the ED and CBE cases and court disputes were resolved. After that, differences arose between the two, which led to property disputes.
Jagan said in the petition that he decided not to execute the MOU and gift deed regarding the shares. He said that the transfer of shares took place without his knowledge, without any transfer forms, documents or signatures. He said that this is against the company law.
He requested the NCLT to cancel the transfer of shares that was made against the rules and order that the 51.01 percent in the name of Jagan, Bharathi, and Classic Realty continue as usual.
