The conflict within the YS family has escalated into a legal battle. Former Andhra Pradesh chief minister YS Jagan Mohan Reddy, along with his wife YS Bharati, is filing a petition in the National Company Law Tribunal (NCLT) against his sister, YS Sharmila, and mother, YS Vijayamma.
The petition centres around disputed share transfers in Saraswati Power and Industries Private Limited, with Jagan alleging irregularities.
The petition, filed under Section 59 of the Companies Act 2013, requests rectifying the company’s register of members. Jagan and Bharati allege that multiple share transfers were conducted in July 2024 without proper legal procedures, such as utilising transfer forms and original certificates, which violates Section 56 of the Act. They are asking the National Company Law Tribunal (NCLT) to annul the transfer of 7,426,294 shares from Jagan to Vijayamma, 4,050,000 shares from Bharati to Vijayamma, and 1,200,000 shares from another petitioner to various respondents.
The petition outlines several respondents, including Janardhana Reddy Chagari, Yaswanth Reddy Kethireddy, Telangana Registrar of Companies officials, and the South East Regional Director. The next hearing is set for November 8, 2024, during which the tribunal will determine the ownership and governance of Saraswati Power and Industries. Additionally, Jagan and Bharati seek to prevent further changes in the company structure until the case is resolved.
Jagan's legal action reflects both business and personal conflicts within the family. According to his petition, a 2019 Memorandum of Understanding (MoU) was initially intended to allocate shares to Sharmila as a goodwill gesture. However, due to political differences, Jagan later retracted the offer. In his filing, he stated, “YS Sharmila, without gratitude or consideration for my well-being, has taken actions that have deeply hurt me. Her false public statements have caused significant personal and political harm.” He confirmed that their relationship has deteriorated to “all love and affection” between them has ceased.
The rift between Jagan and Sharmila deepened during the Andhra Pradesh elections. Sharmila, who joined Congress, publicly criticised her brother and blamed him for their family's divisions. Her decision to merge the Yuvajana Sramika Rythu Telangana Party with the Congress intensified their political rivalry. Additionally, Sharmila’s independent political activities in Telangana, a state their family had previously opposed during the bifurcation movement, further widened the divide.
Sharmila had once played a crucial role in supporting Jagan, especially during his imprisonment in 2012 when she undertook a 3,000-kilometer padayatra to garner support for the YSR Congress Party (YSRCP). However, over time, she became sidelined within the party and did not contest any elections, leading to speculation about a growing rift between them. This tension escalated in January 2024 when Sharmila publicly accused Jagan of being responsible for the disintegration of their family. At a rally in Kakinada, she stated, “Jagan alone is responsible for the breakup of our family. God was a direct witness to it, and another witness is our mother, YS Vijayamma.”
The family’s discord can be traced back to the legacy of their father, YS Rajasekhara Reddy (YSR), who served as Chief Minister from 2004 to 2009. After YSR died in a helicopter crash, Jagan founded the YSR Congress Party in 2011 and later became Chief Minister in 2019. However, his decision to exclude family members from positions of power, particularly Sharmila, created friction within the family.
Vijayamma’s involvement in the current dispute has added another layer of complexity, reflecting how personal relationships within the YS family have intertwined with business and political ambitions.
Jagan and Bharati's petition includes four interlocutory applications to challenge the board resolution from July 2024 and prevent further company ownership changes.
The outcome of the NCLT hearing on November 8 will determine the legal resolution of the shareholding dispute. However, the personal damage within the YS family appears to be irreversible.
With their political ambitions and personal grievances now exposed to public scrutiny, the case raises critical questions about the governance of Saraswati Power and Industries and the future of the family’s political legacy.
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