NCLT upholds Jagan’s plea to cancel transfer of his shares

The National Company Law Tribunal (NCLT) on Tuesday upheld the petition ‘of YSR Congress party (YSRCP) president YS Jagan Mohan Reddy seeking cancellation of alleged illegal transfer of shares in Saraswati Power and Industries to his mother Vijayamma and sister Y S Sharmila, people familiar with the matter said.

- Srinivasa Rao Apparasu

The Hyderabad bench of NCLT — ‘comprising judicial member Rajiv Bharadwaj and technical member Sanjay Puri — which reserved its judgement after prolonged hearings on the former Andhra Pradesh chief minister's petition filed ‘on September 3 last year, delivered its verdict on Tuesday.

‘A YSRCP functionary privy to the information said the NCLT bench agreed with the Jagan’s contention that 51.01% of shares held by him and his wife Bharathi in Saraswati Power and Industries, were illegally transferred to Vijayamma and Sharmila.

“The bench allowed Jagan's petition contending that the shares illegally transferred in the name of Vijayamma and Sharmila be restored back to him,” the functionary said.

Sharmila’s advocate K Devi Prasanna Kumar told reporters that they would file an appeal against the NCLT order either in appellate tribunal or the state high court.

Jagan alleged in his petition that Sharmila got 121,000 shares of Saraswati Power and Industries Private Limited illegally transferred in her name, along with mother Vijayalakshmi and two others.