Hyderabad: YS Vijayamma informed the National Company Law Tribunal (NCLT), Hyderabad branch, that both her son Y.S. Jagan Mohan Reddy and his wife Bharati Reddy were misleading the tribunal. She ruled out transfer of Saraswati shares in the name of Sharmila. Sharmila is being unnecessarily drawn into the transfer of Saraswati shares, she said. Sharmila is not connected to Saraswati Limited or the gift deed but Jagan and his wife Bharati are unnecessarily pulling her into the controversy, she told the Tribunal.Vijayamma made it clear that only she has the sole rights of Saraswati shares. Jagan and Sharmila, in their dispute for assets, are making me run around the courts, she said. It is not fair on the part of Jagan and Bharati to put me through this hardship. The purchase of Saraswati shares and and other shares received through gift deed had been transferred in my name and I had not transferred any shares in the name of Sharmila for vested interests, she said. Now, neither Jagan nor Bharati have shares in Saraswati, she said and made it clear that 99.75% shares in Saraswati are owned by her.The petitions filed by Jagan, Bharati Reddy and Classic Realty, basing on the Family Settlement Deed, are not valid, Vijayamma said and urged the Tribunal to dismiss the petitions with a fine. Vijayamma filed a counter to Jagan-Bharati Reddy’s petition seeking stalling the transfer of Saraswati shares and also inclusion of their names in the stakeholders register to revive their shares. Vijayamma said that Jagan filed the petition only due to the differences between him and his sister YS Sharmila. Though they might be having differences, the petition on Saraswati shares has no connection with it. According to the law, Section 59 of the Corporate and Stakeholders rights should not be used to settle personal scores. The Sandur Company sold 46.71 lakh shares of Saraswati and Classic Realty Rs 71.50 lakh shares to Vijaymma. Over 48.99% of the Saraswati worth 1.21 crore equity shares is now under Vijaymma’s possession. On July 26, 2021, Jagan and Bharati created gift deeds and gave them to Vijayamma. According to the gift deed, over 74.26 lakh shares of Jagan and 40.50 lakh shares belonging to Bharati were transferred to Vijayamma on July 326, 2021. She also submitted the folio numbers of the gift deed certificates. Classic Realty underwent an agreement with Vijayamma on purchase of shares on July 23, 2021. In the transaction, Classic Realty, Saraswati Power and Vijayamma are the only parties. Classic Realty transferred 11.37 lakh shares of Saraswati Power in Vijayamma’s name for Rs 3.07 crore. The transfer was done basing on letter written by Vijayamma on June 14, 2024. The letter was placed in the July 2 Board Meeting and the directors gave their consent to the transfer of shares to Vijayamma. This led to the inclusion of Vijayamma in the company members’ list. Following this, there are no valid reasons to question Vijyamma on the transfer and her rights. Vijayamma made it clear that she has 99.75% stake in Saraswati company. All the shares have been transferred legally and Jagan’s petition is total misuse of the law. She said that pulling personal and political controversies into the corporate affairs was illegal. As both Jagan and Bharati do not have any shares in the Saraswati Power now, they are not eligible to file a petition with the NCLT, Vijayamma pointed out. This petition has no connection with the property dispute between Jagan and Sharmila, she added.
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