A high-profile legal battle has erupted between former Andhra Pradesh Chief Minister YS Jagan Mohan Reddy and his sister YS Sharmila, centering on property disputes. Reddy has approached the National Company Law Tribunal (NCLT) to invalidate what he claims are “illegal” share transfers in Saraswati Power and Industries Private Limited to Sharmila and their mother, YS Vijayalakshmi.
Reddy’s correspondence with the NCLT highlights his allegations of deceit against Sharmila and his refusal to honor a Memorandum of Understanding (MoU) they had previously established. Following the revelation of his letter, Sharmila has publicly responded, contesting Reddy’s accusations and asserting that he has failed to fairly distribute assets among the four grandchildren of their late father, YS Rajasekhar Reddy.
On September 10, Reddy and his wife, Bharathi, filed a petition with the NCLT seeking reinstatement as shareholders in the company, claiming the transfers to Sharmila and Vijayalakshmi were executed through a board resolution in July 2024 without proper legal protocols.
After her fallout with Reddy, Sharmila established her own political party in 2021, which later merged with the Congress party ahead of the 2024 elections. She has since been critical of Reddy, especially during her unsuccessful campaign for the Kadapa Lok Sabha constituency against her cousin Avinash.
In their petition, Reddy and Bharathi assert that the recent share transfers violated the MoU from August 2019, which was intended to transfer certain properties out of “love and affection” but was never finalized. Reddy contends that the recent transactions are “invalid, illegal, void, and unlawful.”
The NCLT has issued notices to all parties involved, with a hearing scheduled for November 8.
Reddy also addressed Sharmila in a letter dated August 27, expressing that despite their familial bond, her public statements had caused him personal distress. He emphasized that he had previously provided her with approximately Rs. 200 crores out of love and intended to transfer additional properties in the future.
Sharmila responded on September 12, arguing that Reddy is not adhering to their father’s wishes regarding equal distribution of assets among all four grandchildren. She highlighted that their father explicitly instructed equal sharing of all assets during his lifetime, including those related to family businesses.
Sharmila contended that the share transfers were part of a property-sharing settlement, asserting that she had initially agreed to concede her equal share for the sake of family harmony. She accused Reddy of depriving her and her children of their rightful properties under the MoU, expressing disbelief at his actions against their mother and family.
Additionally, she criticized Reddy’s attempts to interfere in her political career, deeming it “absurd” for him to expect her to sign a clause restricting her from publicly criticizing him or their cousin.
