Jagan Mohan Reddy breaks ties with sister Sharmila, family rift unfolds in court

The ongoing family feud between YS Jagan Mohan Reddy, former Chief Minister of Andhra Pradesh, and his sister YS Sharmila has now reached the legal arena. Jagan and his wife, YS Bharati, have filed a petition with the National Company Law Tribunal (NCLT) against Sharmila and their mother, YS Vijayamma, marking the culmination of a deep-rooted family dispute. The petition challenges the allocation and transfer of shares in Saraswati Power and Industries Private Limited, with allegations of irregularities and contested ownership at the heart of the dispute.

The petition, filed under Section 59 of the Companies Act 2013, aims to rectify the company’s records. Jagan and Bharati allege improper share transfers occurred in July 2024 through a board resolution without following the required legal procedures. They claim these transfers were executed without documentation, including transfer forms and original certificates, rendering the transactions invalid under the Act.

Jagan has asked the NCLT to invalidate the transfer of 74,26,294 shares from him to Vijayamma, 40,50,000 from Bharati to Vijayamma, and 12,00,000 from another petitioner to other respondents. In addition to Sharmila and Vijayamma, the petition names Janardhana Reddy Chagari, Yaswanthreddy Kethireddy, and officials from the Telangana Registrar of Companies and the South East Regional Director as respondents.

NCLT has issued notices to all parties, with the next hearing set for November 8, 2024. In addition to reversing the disputed transactions, Jagan and Bharati seek to restore their names in the company’s records and block further changes to ownership until the matter is resolved.

The legal case has laid bare the personal discord between Jagan and Sharmila. In his petition, Jagan expressed that he no longer holds any affection for his sister. “YS Sharmila, without gratitude and without regard to my well-being, has carried out actions that have deeply hurt me. Her untrue and false public statements have caused me significant personal and political harm,” Jagan stated. He further confirmed that their relationship had deteriorated to the extent that “all love and affection” between them had ceased.

This fallout marks a significant shift from the past when Sharmila played a pivotal role in supporting Jagan during his political ascent. 2012, while Jagan was imprisoned in a disproportionate assets case, Sharmila embarked on a 3,000-km padayatra to rally support for the fledgling YSR Congress Party (YSRCP). Despite her efforts, she was sidelined within the party, never contesting an election, which led to growing speculation about tension between the siblings.

The situation worsened ahead of the Andhra Pradesh elections when Sharmila, leading the Congress Party in the state, openly criticised Jagan and accused him of dividing their family. The rivalry deepened when Sharmila merged her Yuvajana Sramika Rythu Telangana Party with the Congress, positioning herself against her brother’s political influence. Sharmila’s political moves in Telangana, a state once opposed by the YSR family during the bifurcation movement, further widened the rift.

Adding to the public drama, Sharmila openly held Jagan responsible for the family’s breakdown. During a rally in Kakinada on January 25, she remarked, “Jagan alone is responsible for the break-up of our family. God was a direct witness to it, and another witness is our mother, YS Vijayamma.” These statements underscored the depth of the conflict, as both personal and political grievances came to the forefront.

The rift within the YS family traces its roots back to their father’s legacy, YS Rajasekhara Reddy (YSR), a towering figure in Andhra Pradesh politics. YSR served two terms as Chief Minister, earning widespread popularity, before his sudden death in a helicopter crash in 2009. Following his death, Jagan founded the YSR Congress Party in 2011 and eventually became Chief Minister of Andhra Pradesh in 2019. However, Jagan’s decision to distance family members from power, particularly Sharmila, created friction that has now boiled over into the public domain.

The family dispute revolves around personal differences and business interests, with Saraswati Power and Industries becoming a battleground. Jagan alleges that the board resolution used to authorise the disputed share transfers on July 6, 2024, was improperly executed, violating the requirements outlined in the Companies Act. He and Bharati have also filed four interlocutory applications, seeking additional relief to prevent further company ownership changes.

Their mother’s involvement, Vijayamma, in the dispute adds another layer of complexity to the family dynamics. The case highlights how the once-close family has fractured, with Jagan and Sharmila pursuing separate political ambitions. While Jagan’s YSR Congress Party continues to dominate in Andhra Pradesh, Sharmila’s political efforts in Telangana remain a source of tension between the siblings.

The NCLT’s decision in November will be pivotal for resolving the shareholding dispute and shaping the future governance of Saraswati Power and Industries. However, the personal damage appears irreversible, with both Jagan and Sharmila showing no signs of reconciliation. This public fallout raises questions about the YSR family’s legacy and political future, as personal and business conflicts now stand exposed.

The once-cohesive YS family is now deeply divided, with Jagan’s petition marking a clear break with his sister. As the legal and political battle continues, the story reflects the complexities of power, family, and ambition in one of South India’s most influential political families.