Stop seeing ghosts everywhere: Sitharaman hits back at Rahul Gandhi over Tata row

Leader of the Opposition in the Lok Sabha Rahul Gandhi and Union Finance Minister Nirmala Sitharaman on Wednesday sparred over the escalating dispute within the Tata Group, with the Congress leader accusing the BJP of treating businesses as its "plaything", while the minister retorted by asking whether he was trying to incite business leaders and urging him to "stop seeing ghosts everywhere".

The dispute within the Tata group centres on N Chandrasekaran's reappointment as Tata Sons chairman for a second five-year term, despite objections from Tata Trusts chairman Noel Tata, who has challenged the resolution as a violation of company rules. Tata Sons, however, maintains that the reappointment was legally valid.

Gandhi claimed that the Tata Group was being "criminally destroyed" and questioned why business leaders had remained silent over the controversy and the Union Finance Minister accused him of politicising commercial and legal matters and spreading distrust towards Indian industry.

Escalating the exchange further, Gandhi posted two questions to Sitaraman, also asking when "crony number 1" would enter the game and which pieces of the Tata Group he would get.

The confrontation began with Gandhi, earlier on Wednesday, saying, "Tata is being criminally destroyed and no business leader dares say a word. How long will you stay silent? Until they own you?" He asserted that Indian businesses were not the BJP’s "plaything".

"We don't. We will ensure justice for these crimes," he added. STOP SEEING GHOSTS EVERYWHERE: SITHARAMAN HITS BACK

Responding to Gandhi, Sitharaman accused him of attempting to politicise a commercial and legal dispute, questioning whether he was trying to persuade business leaders to join him in spreading distrust towards Indian industry.

"Being the LoP, Rahul Gandhi, I suggest you refrain from politicising every issue. Also, casually labelling commercial and legal matters as criminal is unacceptable," Sitharaman said in a post on X.

The Finance Minister also invoked the Congress's economic record, accusing the party of suppressing Indian entrepreneurship through the “Licence-Quota Raj” and contrasting it with the Narendra Modi government's policies to support businesses, investment and employment.

"For decades, your party had smothered the spirit of the Indian entrepreneurs under the stifling 'Licence-Quota Raj' and inflicted poverty on crores of Indians," the Finance Minister said.

"So Rahul ji, refrain from seeing ghosts everywhere," she said, accusing Gandhi, his party and previous Congress prime ministers of undermining the judiciary.

Contrasting the Congress-led governments' economic policies with those of the Narendra Modi government, Sitharaman said the BJP-led government valued Indian industry as a source of employment and economic growth.

"Our policies have been tailored to enable enterprise, support industry and encourage investment," she said, adding that political parties, leaders, governments and institutions shared an equal responsibility to support industry, strengthen farmers and secure the future of young people.

Gandhi then hit back at the Union Minister, questioning why Tata Trusts and Tata Sons were hosted at Union Home Minister Amit Shah's residence over a "legal and commercial matter". He also asked when "crony number 1" would enter the picture and which parts of the Tata Group the person would get.

"Dear Mrs. Sitaraman, Which 'legal and commercial matter' required Tata Trusts and Tata Sons to be hosted at Amit Shah's residence? When is crony number 1 going to appear in the game and which pieces of Tata is he going to get? Finally, all India's businesses except 3-4 of your cronies, already hate all of you and don't need any incitement," Gandhi wrote in a post on X.

Attacking the Centre, Gandhi alleged that businesses across India, barring "3-4 of your cronies", already disliked it and did not need any incitement.WHAT IS THE TATA SONS DISPUTE?

Gandhi's remarks came amid a dispute within the Tata Group over Chandrasekaran's reappointment, with Tata Trusts Chairman Noel Tata raising objections to the process and questioning the validity of the resolution approving it.

In a letter dated October 26 to Suprakash Mukhopadhyay, Company Secretary and Group Corporate Secretary of Tata Sons, Noel Tata said the resolution was moved at a board meeting on September 17 even though the agenda circulated to directors did not specifically mention Chandrasekaran's reappointment.

He also said the company had failed to provide him with the audio and video recordings of the meeting, its final minutes or a certified copy of the resolution, despite repeated requests.

Noel Tata argued that the resolution was void because it did not comply with the relevant provisions of Tata Sons' Articles of Association. He claimed that no Selection Committee had been constituted under Article 118 and that no recommendation from such a committee had been placed before the board.

He further contended that the affirmative vote of directors appointed under Article 104B, required under Articles 118 and 121, had not been obtained. According to his letter, the resolution was also put to a vote subject to conditions that had not been fulfilled.

Noel Tata also questioned the handling of the meeting's agenda. He said the original agenda listed item 7 as a “Debriefing from Nomination and Remuneration Committee” and did not explicitly refer to Chandrasekaran's reappointment.

Although the agenda was subsequently revised to include discussions on a Reserve Bank of India letter and related caveat applications, it still did not specifically mention the reappointment, he said.

Objecting to the company treating the resolution as final while the meeting's records remained contested, Noel Tata described the recording as the “only neutral record” of what had transpired. He said the company had failed to share the recordings despite two written requests made over more than three weeks.

He also questioned the circulation of a certified copy of the resolution in the public domain and its reported filing with the Registrar of Companies before the minutes had been finalised.

Noel Tata said the company had certified the resolution as passed without accounting for the conditions attached to the vote, even as his objections and dissent remained unresolved.

“It is unacceptable that, despite being a Director of the Company, I have not been furnished with certified true copy of the resolution,” he wrote, adding that he had been forced to rely on a version circulating in the public domain.

Noel Tata has sought a series of documents and clarifications from Tata Sons within seven days. These include the meeting's audio and video recordings, final or revised minutes, voting details, the formal notice, different versions of the agenda and documents filed with the Registrar of Companies and the Ministry of Corporate Affairs.

He has also asked Tata Sons to inform the Registrar in writing that the resolution's validity is disputed by a director nominated under Article 104B and by Sir Dorabji Tata Trust.

Further, he has sought that no additional steps be taken on the resolution until the record of the meeting is settled.- Ends