Media Reports suggest that NCLT had halted the transfer of shares of Saraswati Power and Industries Pvt. Ltd to Sharmila via Vijaya Lakshmi.
Jagan filed a petition alleging that his sister Sharmila and mother Vijaya Lakshmi illegally transferred shares.
His lawyer argued that the transfer should be annulled.
The lawyer for Sharmila and Vijayamma argued that the transfer of shares was done based on a prior agreement. But Jagan informed the NCLT that he wants to cancel the Gift Deed as ‘the love between the siblings’ is now lost.
The NCLT had halted the transfer of shares primarily because it agreed with Jagan that such a transfer can not be done when the CBI and ED cases are pending.
YSR Congress is hailing this as the Victory of Jagan and claims the Former Chief Minister as righteous.
There are two angles in this judgement.
Legally, it is a temporary relief for Jagan Mohan Reddy.
The transfer of Shares is stopped for now.
But it is stopped on the grounds of ED and CBI cases, but it appears that the court did not go into the merits of the Gift Deed cancellation.
So, the case may come back later.
Sharmila will file an appeal against the order either in the Appellate Tribunal or the High Court.
Even if she does not get relief there, she can challenge the order after the ED and CBI cases are resolved.
Since it will take a very long time for the cases to get disposed of, Jagan will take this as a victory.
But the second angle in this issue is the Moral and Political Angle.
Sharmila will start using this against Jagan Mohan Reddy politically.
She will tell the people how her brother deprived her of a share in the father’s wealth.
She will weep before the people, saying how she was deceived by her own brother. She will tell the people how her brother used her for political gains and dumped her later.
Also, there is an emotional angle involved.
Jagan is trying to cancel a Gift Deed given to his sister.
There are 1000s of families in the Telugu States who give properties to their daughters via Gift Deeds because Gift Deeds carry less registration charges.
Even if the daughter purchases a property from her father or brother, they register via a Gift Deed to save money.
Jagan has shown a way to cancel the ‘Gift Deeds’.
If this has become a precedent in the families whenever the love between siblings is lost, Jagan should be blamed.
If this is rightly used against Jagan, it will damage his image among the women across the state.
