Jagan Reddy vs YS Sharmila over transfer of property shares in Andhra

A dispute over the transfer of shares of a property belonging to YS Jagan Mohan Reddy has turned into an all-out legal battle between the former Andhra Pradesh Chief Minister and his sister, YS Sharmila, and their mother. Jagan Reddy has filed a plea against Sharmila and YS Vijayamma at the National Company Law Tribunal (NCLT) over a share dispute in Saraswati Power and Industries Private Limited.
Jagan Reddy, in his plea, said he initially intended to allocate shares to Sharmila, the Andhra Pradesh Congress chief, “out of love and affection” for her. But, he withdrew the offer due to her recent political opposition to him.
The plea, filed under Section 59 of the Companies Act, seeks rectification of the register of members. Jagan Reddy and his wife YS Bharathi Reddy claim Sharmila and her mother YS Vijayamma played a significant role in the company’s growth and had signed an agreement to transfer a portion of his shares to Sharmila in 2019. However, the allocation was never finalised, leading to the current dispute.
Since these assets were under attachment by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) due to ongoing legal cases, the agreement explicitly stated that the transfer would only happen once the legal issues were resolved.
Despite being aware that the assets were legally attached and under court restrictions, Sharmila allegedly transferred shares from Vijayamma’s name, citing the agreement, Jagan’s plea claimed.
Chief Minister Chandrababu Naidu-led Telugu Desam Party (TDP) jumped into the family feud and shared a letter, purportedly written by YS Sharma, on X.
In the letter dated September 12 and signed by YS Vijayamma, Sharmila strongly objected to a letter by Jagan Reddy. Sharmila accused Jagan Reddy of betraying the vision of his late father, YS Rajasekhara Reddy (YSR), and refusing to honuor his father’s wish to equally distribute family assets, including Bharathi Cements and Sakshi Media, among his four grandchildren.
The letter also described how Sharmila was allegedly coerced into relinquishing her rightful share of the family inheritance in a settlement agreement reached in 2019. According to the claims, Jagan Reddy later sought to nullify the agreement. Additionally, it accused Jagan Reddy of filing lawsuits against his mother and sister in a bid to illegally seize control of family assets.
Sharmila, in the purported letter, alleged that Jagan has been using his political influence to pressure her into abandoning her political career, threatening to withhold family assets unless she complies.
Saraswati Power and Industries Private Limited is not part of the Reddy family’s inherited assets. Rather, it is Jagan Reddy’s self-acquired property. The assets are currently under legal attachment and cannot be transferred until the court cases are resolved.
Sharmila, aware of the legal status of the share transfer, allegedly executed the gift deed and transferred the shares in violation of the court’s restrictions.
The gift deed was executed in 2021, but Jagan Reddy refrained from completing the share transfer, preferring to wait until all legal matters were settled. He was then compelled to inform the court of these actions to protect his legal position and prove his good faith.
The case was listed in the NCLT on September 10 and the tribunal will hear the case on November 8. The NCLT has issued notices to all respondents, including Janardhana Reddy Chagari, Yaswanthreddy Kethireddy and others.
Jagan Reddy has filed four interlocutory applications in connection with the case.
Sharmila launched her own party, YSR Telangana party, in 2021 after a public fallout with her brother. She merged her party with the Congress ahead of the 2024 Lok Sabha polls and was appointed the Andhra Pradesh Congress chief.
Sharmila had sharply criticised Jagan Reddy, who was the Chief Minister at that time, and contested against her cousin Avinash Reddy from Kadapa Lok Sabha seat, but she lost. Reacting to her candidature, Jagan Reddy said he was pained to see his sister contesting on a Congress ticket and “losing her deposit”.
Jagan Reddy was once a part of the Congress, a party which his father YS Rajasekhara Reddy had belonged to. He quit the Congress in 2010 after a fallout with the party’s high command and floated the YSR Congress in 2011. Her mother, Vijayamma, also a former Congress leader, also resigned from the party and joined her son’s new party.