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November 28th, 2010 
Girish Nikam By Girish Nikam
“Jamsetji Tata was a man of great achievement, far-seeing and circumspect. His resolute will enabled him to elaborate projects which his imagination conceived upon the largest scale. He was at once a businessman, a patriot, and a thinker, whose service to India was as great as his love for her was profound” —- Frank Harris, author of “Jamestji Nusserwanji Tata, A Chronicle of His Life”, in his preface, May 1925.
“In Indian industry the terms ‘integrity’ and ‘Tata’ are synonymous, with the result that the House of Tata and its far flung organisation have the stamp of stability, security and success”, in the jacket of the above Book.
For generations of Indians, and even outside the country, if there was one word which spelt “trust” and “integrity”, it was the word Tata. One of the well known legendary tales in the Indian industry about Tatas, was that “Tatas don’t bribe” and “Tatas don’t indulge in politics”. It was an intrinsic principle of the House of Tatas, and for all the employees of this humongous group, it was a matter of honour that they believed and practiced this principle.
Recently the present Chairman of the Tata group, Ratan Tata, who has taken his group beyond even the wild imagination of its founder, Jamsetji Tata, in his over two decades of stewardship, came out publicly, how he did not get the permission to start an airlines, because he did not want to pay a bribe. Meanwhile, his group has got caught in a huge controversy, following the Radia tapes being made public, and his own conversations with the controversial lobbyist, Niira Radia, whom he has hired to take care of the corporate communications of his entire group, an extra-ordinary step by itself.
Here it would be interesting to mention that the Tata group has one of the most acclaimed and oldest in-house Corporate communication network. What was then known as the Department of Publicity, the modern version of Corporate communications, was established in or around 1928, and alongwith the Indian Railways Publicity department, is considered the oldest set up in the country. It was this set up which handled all the work of liaisoning with Governments, media and public, in the interest of the various companies of the Tata group for decades, before Ratan Tata decided to bring in Niira Radia’s Vaishnavi communication around 2006-07. It has left the Corporate communication wing of the Tata groups of companies to just manage events, while Radia is being, according to sources, paid Rs.34 crore per year.
Coming back to Ratan Tata and his interview on television, he has warned the country of heading towards becoming a “banana republic”. He has also claimed in this interview while referring to him having contracted Niira Radia’s firm, Vaishnavi Communications to represent his group that, “Never once in our association with her have we tried to subvert policy, move policy.—– Never once have we used her to make payments or to seek favours—“.
How much does this statement stand to scrutiny in the light of the revealations made in the Tapes and also in the documents of the CBI and Directorate General of Income Tax which are in the public domain, and have not been challenged so far.(see documents http://indiasreport.com/magazine/data/the-radia-papers-raja-tata-ambani-connection/.
In the “Internal evaluation report of July 2009” phone calls, after Niira Radia’s phones had been kept under surveillance the report states(see http://indiasreport.com/magazine/data/the-radia-papers-raja-tata-ambani-connection/), “ there is a long call between Mr.Ratan Tata and Mrs.Radia, which establishes that Mr.Tata wanted to prevent Mr.Maran(Dayanidhi) from becoming the Telecom Minister at any cost”(this tape is still not in public domain).
Meanwhile in the published tapes of his conversation with Niira Radia, (see outlook dated Nov.29,2010) Ratan Tata tells Radia—-
RT: — I guess the only concern I have is that Maran is going hammer and tongs for Raja. And I hope Raja doesn’t trip or slip out”.
It is now well known through all the tapes available in the public domain that Niira Radia was desperately trying to keep Maran out of the Telecom Ministry in May 2009, when the UPA II Cabinet was being formed. Now is this not subverting policy or trying to move policy? And does it not blow up the myth that Tatas don’t indulge in politics?
Now coming to the second assertion of Ratan Tata in the TV interview, about him(his group) not having used Niira Radia to make payments or to seek favours, the following is the conversation, the transcripts of which have hitherto not been available in public domain.
The conversation is between Ratnam, Chartered Accountant of Tamil Nadu Chief Minister M. Karunanidhi’s third wife Rajathiammal, Rajathiammal herself and Niira Radia. The conversation took place on June 13, 2010, more than three weeks after the UPA II Cabinet had been formed and A.Raja had been successfully planted as the Telecom Minister and Dayanidhi Maran, was kept out, as desired by Ratan Tata and also Mukesh Ambani, as conversations of Radia with others clearly indicate.
Following is the full text of the conversation between Ratnam/Rajathiammal and Niira Radia:
Ratnam to Radia: Hii morning Madam.
Radia to Ratnam: Hii, hii, uhh uhh
Ratnam to Radia: Madam(Rajathiammal, third “wife” of Karunanidhi and mother of DMK MP, Kanimozhi) baat karna chahti hai, de doon?
Radia to Ratnam: haan haan, please ok,(whispers to someone nearby— Karunanidhi ki patni)— call is being transferred, (she takes a deep breath) call connects— oh I am so sorry, hello how are you(very sweetly indulgent)?
Rajathi to Radia: Hello, I am fine, how are you(in english)?
Radia to Rajathi: I am so sorry, I have not been in touch, I am busy! How are you?
Rajathi to Radia: am fine.
Radia to Rajathi: Yeah, keeping better?
Rajathi to Radia: ummm
Radia to Rajathi: Good, good, good. How is CM(Chief Minister M.Karunanidhi)
Rajathi to Radia: (mumbles) aahhh, —ok.
Radia to Rajathi: (tone is still sweetly indulgent), good, Kani(Kanimozhi), Kani, I met last week, I didn’t meet her this week. Kani is in Chennai?
Rajathi to Radia: ahh yes.
Radia to Rajathi: Shes come no? How are things?(Rajathi mumbles again, clear she is not comfortable talking English), good. How are things?
Rajathi to Radia: mumbles something inaudible
Radia to Rajathi: Haan?(silence for sometime)
Rajathi to Radia: what happened?
Radia to Rajathi: (voice turning anxious) to?
Rajathi to Radia: aaahh
Radia to Rajathi: Tata?
Rajathi to Radia: ah, yes
Radia to Rajathi: (very anxious)not done?
Rajathi to Radia: no, not done( voice low )
Radia to Rajathi: Ratnam is there?
Rajathi to Radia: Yes.
Radia to Rajathi: I will talk , let me speak to him. I thought it was all done
Rajathi to Radia: (voice low) yes, ummm( hands over to Ratnam)
Radia to Ratnam: Hi Ratnam( tone changes, more authoritative)
Ratnam to Radia: Hi Madam
Radia to Ratnam: What happened its not done?( anxious indignation in the voice)
Ratnam to Radia: No Madam, it s not done(??). I just give you a message, no madam.
Radia to Ratnam: I didn’t get a message.
Ratnam to Radia: Madam?
Radia to Ratnam: I got a new mobile, I thought you got my mobile. You don’t have my new mobile number?
Ratnam to Radia: I am talking to you on that mobile only na? Same mobile he(?) also tried no.
Radia to Ratnam: No, no, this is my regular mobile, the other one, my indicom, my indicom(she gives the number)
Ratnam to Radia: no, this(new number) has not been given to us.
Radia to Ratnam: I had told Cecilia(Personal assistant to Niira Radia) last week itself.
Ratnam to Radia: You know Cecelia is totally last one week , not in touch.
Radia to Ratnam: no, no, I will tell you why. Her mother’s is in hospital.
Ratnam to Radia: yeah, that I know.
Radia to Ratnam: She’s been very sick. So that’s why Cecilia has been a little problematic.
Ratnam to Radia: ummm, ummmm. But you said no, you yourself has done.(Radia—yeah!), But that has not come. That’s why I sent a message to you.
Radia to Ratnam: (short silence) I cant believe it, is it?(Ratnam—yeah madam, yeah madam) That can’t be possible( anxiety in her voice)
Ratnam to Radia: No mam, it(?) has not come.
Radia to Ratnam: (short silence) What about Tatas? Whats happening on that?
Ratnam to Radia: Mam, Tata everything’s ok, but this rent 50 percent, yesterday I got a mail, that’s why yesterday also I tried you.(Radia—haan) This agreement, they say that 50 percent of the rent has to be paid by us. So I have already sent a mail to Krishna Kumar(Director, Tata Sons and key aide of Ratan Tata and Chairman, Tata Realty and Infrastructure Ltd.) stating that its not possible. Then I made a call to Krishna Kumar, he did not picked up(sic) and then I called Sanjay Ubhalia(Managing Director, Tata Realty and Infrastructure ltd) (Radia—haan). He says that he will take up the issue with Krishna Kumar and sort it out that(sic).
Radia to Ratnam: No, but when you were in Bombay, it was agreed that no rent and—
Ratnam to Radia: Everything was clearly agreed and Krishna Kumar also said that he will talk to Voltas(a Tata Group company) and he will waive that. But yesterday I tried ten times to call Krishna Kumar and he didn’t pick up, and he was in a meeting it seems.
Radia to Ratnam: No, No yesterday there was a board meeting of Indian Hotels and the annual results were being announced, and also they were in the middle of buying Sea Rock Hotel in Bombay, you know? (Ratnam—ummm). So that’s why it was very difficult to reach him yesterday.(Ratnam—-yeah, yeah)
Ratnam to Radia: yeah, yeah, that’s why I called you , I want to tell you this yesterday.
Radia to Ratnam: No, I will speak to him, ahh Ratnam, I will speak to him Monday, because you know today he is not there, he has gone with the Chairman(Ratan Tata). I hope he hasn’t gone, he was supposed to travel to the US today(Ratnam—who mam?), Krishna Kumar was supposed to travel to US today.
Ratnam to Radia: No mam, only one day, Thursday only he come back, na madam?
Radia to Ratnam: No, no, he has gone again. He is going with his Chairman today. (Ratnam— is it mam?), Yeah, yeah, he was scheduled to travel this morning by Air India(Ratnam—oh!), let me check, le me check. I will have a word with them. But then I am surrrprised!
Ratnam to Radia: Yes, Mam, that’s why I am repeatedly calling Cecilia, and that mobile is totally switched off.
Radia to Ratnam: ummmmm ahhhh, let me talk to her. I will talk to her annnddd, you got my other number na?
Ratnam to Radia: I got your number, that number is what you are talking now na?
Radia to Ratnam: yeah, yeah, do me a favour Ratnam. Give me a missed on that number from your phone. (Ratnam— yeah, yeah) You don’t have any other phone Ratnam?(Ratnam—I have Madam) Give me a missed call from that number na, which is— (gets disconnected)
http://business.outlookindia.com/view.aspx?vname=RatnamDMK-worknotdone-20090613-114740.wav&format=1
The issue being discussed in this conversation becomes clear when one peruses the Internal evaluation report of the Directorate General of Income Tax( see http://indiasreport.com/magazine/data/the-radia-papers-raja-tata-ambani-connection/), wherein the report clearly states:
3. Tata through Voltas(a Tata group organisation) is in touch with Niira Radia and Ratnam, CA of (Rajathi)Ammal, wife of (Chief Minister) M.Karunanidhi,. They are apparently going to construct a building in Chennai on a land controlled by “TRIL” (Tata Realty and Infrastructure ltd.) with the Karunanidhi family as a payoff to DMK for keeping Maran out of Telecom(ministry).
Coming to another legendary truth about the Tata group, that their dealings are most transparent, as its founder J.N.Tata had envisaged. Again as per the documents of the DGIT two transactions which comes out of the conversations between Niira Radia and others, including Tata( which are still not in the public domain) shows how Radia influenced Tata to indulge in “not so transparent” operations.
One is the Rs.250 crore which Tatas have paid to Unitech(as per documents http://indiasreport.com/magazine/data/the-radia-papers-raja-tata-ambani-connection/), during the time of the 2G spectrum allocation, which has now come under a great deal of cloud. The document states:
6. Unitech as per conversations holds TATA’s Rs.250 crore, which were organized by Mrs.Radia. Many cheques for repayment have bounced. (This tape is not yet in the public domain)
Now apart from having links with Unitech, the taped conversation analysis has also found that :
2. —– Apparently Tata, as per taped conversation, indirectly controls equity in Aircel( a rival mobile operator apparently), through Maxis Communication and Apollo. (this tape is also still not in public domain)
It is also interesting to note that Niira Radia in more than one conversations with different people, keeps harping about how former Chief Minister of Jharkhand, Madhu Koda had demanded a pay off of Rs.180 crore to extend a iron ore mining lease to the Tata Steel. Apparently this mine in South Jharkhand has been with the Tata Steel for decades, and the lease has to be periodically extended by the Government. She also claims in her conversations that she had rejected it.
What however she doesn’t say in these conversations is how she managed to get the lease extended. That is available in the DGIT documents summarizing the conversations taped. In the document, it says:
3. Apparently in Jharkhand, Tatas needed its lease on a mine to be extended. As per conversation, former CM Madhu Koda had sought a payoff of Rs.180 crore. Mrs.Radia had got the lease extended from the Governor of Jharkhand(apparently Syed Sibte Razi) and part from her success fee(amount not known) Ratan Tata has sanctioned Rs.1 crore as reward for the team handling it.
The question which arises from this revealation is what was this “success fee”? As per industry insiders who are familiar with such transactions, it is an euphemism for “payoffs” to be given to those who demand it for getting the work done. Incidentally it may be recalled after Madhu Koda was forced to quit in August 2008, Shibu Soren came in as CM, only to lose it in January 2009, after which there was President’s rule in Jharkhand between January and December. Sibte Razi was Governor between Dec. 2004 and July 2009, when he was shifted after a series of controversies. Two of Razi’s aides, Avinash Kumar, an IAS officer and Rajesh Thakur, PA to Razi, are both facing CBI enquiry into charges of corruption and disproportionate assets at present. So is there any relation to the “success fee” and these officials?
So does Ratan Tata’s assertions hold true? Is the House of Tatas today as it was legendary known to be always? These are the questions which are now begging answers., especially after the way in which hand his lobbyist Radia, moved heaven and earth to get Raja the Telecom Ministry. And they were able to get their way, as the above conversation between Radia and Rajathiammal indicates, after appeasing the DMK’s first family.
On the other hand If Tata has nothing to hide and as he claims wants a clean investigation into all the allegations flying around, why is he planning to move the Supreme Court to bring a stay order on further disclosure of the intercepted conversations? Are there more skeletons in the cupboard, as the as yet undisclosed conversations mentioned above indicate? If not why should he shy away from a “transparent” investigation? The legend that “Integrity” and “Tata” are synonymous may sadly just get dented, if not destroyed, if any such attempts are made now.
—–ends
Links which may be useful to understand this issue better:
http://ghulammuhammed.blogspot.com/2010/11/nira-radia-and-outlook-magazines-expose.html
Posted in
Girish,
TATA, BYE, BYE !
Is Ratan Tata as clean as he claims: Why is Niira Radia talking to ……
Here at World Spinner we are debating the same thing……
[...] This post was mentioned on Twitter by Arturo Gonzalez, girish nikam. girish nikam said: latest http://indiasreport.com/magazine/data/is-ratan-tata-as-clean-as-he-claims-why-is-niira-radia-talking-to-karunanidhi%E2%80%99s-wife/ [...]
Girish Sir, very well written. The expose on so-called ethical business houses like Tatas are the biggest revelations of Radia Tapes. In one tape Radia speaks to Shalni of Tata Power where they discuss leaking a letter to the media, then floating a gloomy financial impact analysis (done by Tata Power) among financial media and instigating shiv sena against a competitor. This is where Ratan has brought JRD’s House of Tatas.
Noone, including CBI or CVC or ED or CAG, has looked into the backdoor entry of Virgin Mobile in a “brand agreement” with Tata Teleservices. Virgin did not even pay a single rupee license fee.
My friends in Radia camp tell me that Vir often used to enjoy free hospitality of Taj, a fact noted and questioned by auditors once.
Another myth put into test. TATAs are only LESS corrupt than others–OR maybe the business enviornment is too tempting to get quick results thru easy methods. By all these, we are only confirming that Business-Politics nexus is deeply entrenched and need a massive obverhaul, if common man needs to enjoy benifits of various schemes/budgetory allocations. But, we are fooling ourselves, as w/o these transactions, how will a Political party Fight elections!!!. Look at Yeddy in Karnataka, he can still survive on caste considerations and having “No alterantive” mantra–this is democracy-whom will people vote far-a less corrupt neta!!!
Quodos to Nithish and People of Bihar.
Every one is being made greedy by these dirty politicians. Honesty does not pay today rather harmful for an Industrial house or for an honest officer.
Sage Viswamitra too fell to Urvashi’s beauty, so what about Ratan Tata?
Gone are the days of JRD and come the days of Raja, Koda, Ambanis, Raju, Telegi etc.
Let’s mourn honesty and integrity in India.
It is already a great shame that India’s integrity score is 3.3 and she ranks 87th in terms of corruption. Supplementing this the Tata’s dropped 2 notches getting 61st position in Forbes 2010. Now this global player in the world economy promising to become an Indian MNC has such facts ungraved.Whom can the layman now look upto for Indian’s economic sanity,and unpolluted progress?
Have u ppl read the white tiger by aravind adiga? It is a true revelation on India. What applies to microscale , Ratan Tata and Mukesh are doing in macroscale.
Thank you for your article.
I also admired Tata until I worked for TATA in Spain and I met Raja Rao and PM TELANG. I also considered Integrity and TATA were the same. What a MISTAKE.Unfortunately – I have been Deputy General Manager – It has been the closest thing to hell I have ever lived in my extensive professional life in 26 years.
¿Ethics? ¿ Values? ¿Integrity?. SILENCE…SILENCE…SILENCE
You can see my article here:
http://arturoasas.blogspot.com/2010/11/what-peter-drucker-would-say-to-mr-tata.html
Girish, Please publish why this JRD is against Maran? I am sure you know about the issue of DTH which both maran brothers disturbed Tata like anything. This Maran and family is hard core fraud by all means and looting money and moving the looted money out of india there by causing damage to the whole country. This also has to be published otherwise it will give an impression though TATA is totally wrong. As someone commented TATA is much cleaner than all other enterprenors.
This is really shameful for entire country. All major deals are fixed by these Radia types people with the money Power. i don’t think that any thing going to happen. All these big fishes are enough powerful to make themself secure from judiciary as Amar singh did in past. shameful for us that we r living in a system governed by ‘DALALS’.
well i agreed with Mr.Arturo Gonzalez’s words-
¿Ethics? ¿ Values? ¿Integrity?. SILENCE…SILENCE…SILENCE
Dear Girish,
Great work….congrats……what is your number….keep in touch……warm regards…J Gopikrishnan….from The Pioneer
I am now wondering why Tata did not pay few crores at Singur to start the production of Nano? I remember the reason that was told was that he denied to pay few crores of bribe demanded by local politicians. And then he took so much of pain to move to Gujarat. If all these ‘behind-the-door’ transactions by Ratan Tata is true, I am at a loss why he did what he did in Singur.
after two decades of leading a world famous business empire the name of which is revered by most indians
i cannot believe ratan tata did this or at least had something to do with the 2g scam it is a pity and shame
[...] this question. He is a keen political observer and has some honest opinions…here they are:http://indiasreport.com/magazine/data/is-ratan-tata-as-clean-as-he-claims-why-is-niira-radia-talking…Related Articles:Food Corruption of India!Cheating? We just legalised it!Breaking news: Bad news [...]
[...] Post by Girish Nikam – Is Ratan Tata as clean as he claims: Why is Niira Radia talking to Karunanidhi’s wife? [...]
ratan tata is making a fool of himself by protesting his so called innocence when the whole world now knows how corrupt and dual faced he has always been. trust the corporates to put their best foot forward and hide their other feet of clay. hes repeatedly howling now to the supreme court trying to block release of new tapes- this only shows more damning expose would follow if the tapes are fully leaked. even now hes not worried about his image or the image of his business house taking a beating, hes desperate to prevent further expose which might end up irreperably harming him personally or financially, and also the careers of several corrupt politicians, corrput media moghuls and equally corrupt corporate houses.
thats the same reason shameless manmohan and sonia are stonewalling attempts to have a JPC inquiry.
CORRECTION: “Cecilia (Personal assistant to Niira Radia)”. Cecilia is NOT PA to Radia, she is PA and a key aide of RATAN TATA! Cecilia is a Tata employee!
Thanks for following this story Mr Nikam.
Hi Girish,
Without discounting on the argument that the Tata group or anyone for that matter have to be throughly investigated by the concerned agencies, and the guilty punished, I strongly disagree with your arguments:
1. The audio tapes should be made public while investigations by concerned agencies are on
2. “Transparent investigation implies publishing all the recorded audio tapes and let every news paper publish, and interpret it for public consumption with whatever levels of diligence they deem fit.
we need to accept:
1. “Right to Privacy” and “Right to respect-ful living” are fundamental rights of every citizen; the law of the land holds anyone accused of crime as “not guilty” until honorable court gives its judgement.
2. Telephone tapping, as per law has to be done responsibly by authorized agencies, the recordings are also to be handled as per law (we will be seeing some good judgement coming from Honorable Supreme Court to that effect).
3. When the matter has gone to the highest court, we being judgmental about it is in appropriate when at least the person (here Ratan Tata) is asking for a fair investigation in the court of law, and seeking court’s intervention to handle the investigation material with sensitivity and as per law.
Without sensationalizing the issue (as it generally happens), i feel the investigative journalism will better serve the country when they pursue investigators for their due diligence and comprehensiveness in investigation, continuously educate the public of what to take note of amidst the cacophony, demand political parties to apply themselves to have highest level of commitment for investigation, and ensure public debate and interest is maintained all through (from investigation, to results and to corrective action).
I strongly miss an analysis in the media on the various modes of investigation options available, the pros and cons of each and what combination is suited in this situation which could be published to make the public educated enough for a healthy debate.
Regards,
Murali BV
the pr industry is all too familiar with how vaishnavi got the pr mandate for tatas – literally on a platter after ms radia was able to demonstrate her lobbying prowess to mr tata on a particular deal. she started vaishnavi for the tatas and all tata companies were given no choice but to give their biz to vaishnavi. it created quite a stir in pr circles then. all this talk about not being given an airline because he did not pay a bribe cuts no ice – why did he not make a noise then to protect his supposedly “squeaky clean” image
Dear Mr Nikam,
I read your story on the TATAs and thought I would bring to your attention a similar case that has been running on for decades.
As you may perhaps know, the Dhamra port, built in the vicinity of Bhitarkanika sanctuary and the Gahirmatha turtles breeding site, is also a joint venture between TATAs and L&T. Despite numerous letters and communications from the state officers to the environment department in Orissa and consecutively to the Union ministry, that Dhamra is a violation of the forest conservation act as the site was classified as protected forest in 1961. Despite this the Orissa government and the union ministry has given clean chit to them in their submissions to the Central Empowered Committee of Supreme Court.
We had filed for file notings and the various communications. In a file noting recently received by us, Jairam Ramesh clearly says that the project is a probable violation of FCA and that it could have been stopped had the construction not completed. But there is no mention of the expansion plans of Dhamra. The fait accompli logic used by the Ministry sets a dangerous precedent, and contradicts the Government’s statements on the Adarsh Society project in Mumbai, or Vedanta’s Lanjigarh refinery – both of which the MoEF has threatened to demolish/shut down for violating the law.
Considering the recent case of corporates meddling in governance, we would like to know what meddling happened here. We would also like to raise the larger issue of corporate interference in government decisions. Would request you if you can take this up in your future writings.
Shachi Chaturvedi
Greenpeace
I just read your blog post at http://indiasreport.com/magazine/data/is-ratan-tata-as-clean-as-he-claims-why-is-niira-radia-talking-to-karunanidhi%E2%80%99s-wife… just saying I appreciate it, great post.
I really like this particular post http://indiasreport.com/magazine/data/is-ratan-tata-as-clean-as-he-claims-why-is-niira-radia-talking-to-karunanidhi%E2%80%99s-wife/ because it’s seriously amazing info. I feel surely check out some other posts of yours they are interesting.
Earlier I was thinking that Mr Ratan Tata is not like other businessman but now I can confidently say that HE IS NO DIFFERENT.
Saying something and acting on the same are two very different things.
Its easy to say that Ambani (Mukesh) should not spend hude amount on his bunglow but should responsibly think regarding poor people as well.
But DOES RATAN TATA thins the same.
NO
I have had this horrible experience recently whereby Inspite of writing my many mails to Mr Ratan Tata, he didnt even bothered to respond to even ONE.
SO I will strongly agree that all these Multi-Billionares are same – they think about themselves and no one else.