Family feud settled: NCLT favors Jagan, loss for Vijayamma–Sharmila

In a significant legal win for Andhra Pradesh Chief Minister Y.S. Jagan Mohan Reddy, the National Company Law Tribunal (NCLT), Hyderabad, has ruled in his favor in the ongoing corporate dispute involving Saraswati Power & Industries. The tribunal has nullified the share transfer carried out by Jagan’s mother Y.S. Vijayamma to his sister Y.S. Sharmila, ordering that the transaction be frozen with immediate effect.

Legal Victory for Jagan

The dispute stemmed from Vijayamma’s decision to transfer her majority shares in Saraswati Power to Sharmila without consulting or informing Jagan. Alleging that the transfer was done illegally and without their consent, Jagan and his wife Bharathi approached the NCLT last year. They cited ongoing CBI and ED investigations, under which the company’s assets were already under scrutiny.

The couple argued that they still held 51.01% ownership in the company and that any such transfer — especially while legal proceedings were ongoing — violated bail conditions and undermined ongoing enforcement actions. On the contrary, Vijayamma and Sharmila defended the move, insisting that the transfer was legitimate, done in compliance with existing laws, and did not contravene any ED seizure orders. They further argued that 99.89% of shares had already been in Vijayamma’s name and that the company was fully under her control.

However, Jagan maintained that although he had once intended to gift the shares to his sister, it was supposed to happen only after the legal proceedings were concluded.

NCLT verdict freezes share transfer

After nearly ten months of legal proceedings, with final arguments submitted on May 30, the NCLT bench comprising Rajeev Bharadwaj and Sanjay Puri delivered its verdict today. The tribunal sided with Jagan’s contention, ruling that shares involved in CBI and ED cases cannot be transferred, regardless of internal family decisions.

The order effectively freezes the disputed share transfer, dealing a major blow to Vijayamma and Sharmila’s claims. YSR Congress Party (YCP) leaders were quick to respond, calling the judgment a clear vindication of Jagan’s stand and a reaffirmation of legal integrity in the face of internal family conflict.

As the political and personal dynamics of the YSR family continue to draw public interest, this ruling marks a decisive moment in the high-profile intra-family corporate battle.