Saraswati Power Moves NCLAT Against Reinstatement of Y S Jagan Mohan Reddy as Shareholder; Tribunal Orders Status Quo
Sahyaja MS
14 Oct 2025 3:07 PM IST
Saraswati Power and Industries Pvt Ltd has moved the National Company Law Appellate Tribunal (NCLAT), Chennai challenging a National Company Law Tribunal (NCLT) order that reinstated former Andhra Pradesh Chief Minister Y S Jagan Mohan Reddy, his wife Y S Bharathi, and Reddy's mother Y S Vijaya as shareholders in the company.A bench of Justice N Seshasayee and Technical member Jatindranath...
Saraswati Power and Industries Pvt Ltd has moved the National Company Law Appellate Tribunal (NCLAT), Chennai challenging a National Company Law Tribunal (NCLT) order that reinstated former Andhra Pradesh Chief Minister Y S Jagan Mohan Reddy, his wife Y S Bharathi, and Reddy's mother Y S Vijaya as shareholders in the company.
A bench of Justice N Seshasayee and Technical member Jatindranath Swain while hearing the appeal directed that status quo be maintained until the pleadings are complete in the matter.
“No right as shareholder shall be exercised by either party till next date..”, the court said.
This was after Senior Advocate PS Raman representing Reddy submitted that they will not initiate any contempt proceedings for the non adherence of the NCLT order until the pleadings are complete.
The company has contested the NCLT Hyderabad bench's July 29, 2025 order.
The tribunal had ruled in favour of Reddy, who sought cancellation of what he termed an "illegal transfer" of shares held by him and Bharathi to his estranged sister Y S Sharmila.
While Reddy had earlier agreed to gift the shares via a Memorandum of Understanding citing "love and affection," the tribunal observed that the transfer was never legally completed due to non-delivery of original share certificates.
"While the gift deeds appear to have been formally executed, the intended transfers were never consummated in law due to the non-delivery of the original share certificates by the donors an essential prerequisite for effecting a valid transfer of shares. In the absence of such delivery, the Company was precluded from lawfully registering the shares in the names of the alleged transferees," the order said.
Following a fallout with his sister, who joined the Congress party in 2023 and unsuccessfully contested the 2024 general elections from Kadapa, Reddy had moved the NCLT to revoke the earlier arrangement.
The NCLT had directed Saraswati Power to amend its Register of Members to reflect Jagan, Bharathi, and Vijaya as shareholders and to notify the Registrar of Companies (RoC) accordingly.
Reddy, Bharathi, and Vijaya hold 29.88%, 16.30%, and 48.99% respectively in the company, with the remainder owned by Classic Realty Pvt Ltd.
Case Title: Saraswati Power and Industries Pvt Ltd. Vs Yeduguri Sandinti Jagan Mohan Reddy & 8 Ors
Case Number: Comp App (AT) (CH) No. 119/2025