A heated ownership battle which emerged between Ex CM Ys Rajesekhara Reddy son YS Jagan Mohan Reddy and daughter YS Sharmila over Saraswati Power and Industries Limited, bringing public attention to the acquisition and control of valuable resources.
At the heart of this family dispute lies a massive limestone deposit valued at Rs 10,308 crore, situated within 1,515 acres of land in Palnadu district. These properties were acquired during their father YS Rajasekhara Reddy’s tenure as Chief Minister, with land purchases made at Rs 3 lakh per acre – a price significantly below market rates.
The conflict escalated when YS Jagan approached courts claiming complete ownership of these assets, despite previously sharing company shares with his sister Sharmila. According to his 2019 election affidavit, Jagan owned shares worth Rs 26.4 crore, while his wife held shares valued at Rs 13.8 crore in the company.
Following his rise to power in 2019, YS Jagan’s government swiftly renewed the mining leases for 50 years – leases that had been previously cancelled by the former TDP administration. The renewal included a substantial water allocation from the Krishna River, amounting to 0.0689 TMC.
However, despite holding these valuable assets for 15 years, Saraswati Power has shown no industrial development on the site. The company’s 2022-23 financial statement reveals zero turnover, with the once-agricultural lands now lying barren.
The dispute has sparked widespread debate about the privatization of public natural resources in Andhra Pradesh. Critics are calling for a review of the mining lease allocations, arguing that natural resources should benefit the broader public rather than remain under private control.
The controversy has also brought attention to the company’s history, revealing how it transformed from a small power generation unit in Karimnagar, with annual business barely reaching one crore rupees, into a holder of valuable mining rights worth thousands of crores under the YS Rajasekhara Reddy family’s influence.
-Sanyogita
