Sitharaman weighs in on Tata row: 'Should be resolved amicably, internally'

Sitharaman calls for an amicable resolution to the Tata Trusts-Tata Sons dispute, saying the conglomerate is critical to the Indian economy and should return to normal functioning

MUMBAI: Finance minister Nirmala Sitharaman said on Monday the dispute between Tata Trusts and Tata Sons should be resolved amicably, describing the salt-to-software conglomerate as a critical component of the Indian economy.In her first public comments on the dispute, she said govt would prefer an early resolution that allowed the group to return to normal functioning. "I know the brand value of Tata, the contribution that the Parsi community has made to make Tata a huge global brand. I also know the expanse of activity in which Tatas are invested in. So, this is a very critical component of the Indian economy, and therefore it has to be amicably settled among themselves," Sitharaman said during a fireside chat organised by Financial Express.FM Nirmala Sitharaman was responding to a question on the govt’s reaction to Congress LOP Rahul Gandhi’s allegations that it was attempting to destabilise the Tata Group.Rahul has accused the Modi govt of attempting to “criminally destroy” the group and treating Indian businesses as political playthings amid the dispute between Tata Trusts, which own the holding company, and Tata Sons, which owns the operating businesses.

Sitharaman said the matter required commercial judgement and cordiality between the parties. “I think these are very delicate matters and matters where a lot of commercial and business acumen will have to work. Business cordiality will have to work,” she said. Asked whether govt would intervene, she described the issue as sensitive and said she would not like to comment on it.FM also rejected allegations of govt favouritism towards select corporate groups, pointing out that industrial houses targeted in parliamentary criticism were also welcomed and courted for investment by opposition governed states such as Karnataka and Telangana.

On 23% growth in GST collections during Oct, she rejected suggestions that high revenues merely reflected a rise in imports (which had risen 42%).

She said most imports comprised essential raw materials and intermediate goods required by domestic manufacturers to meet export demand.The minister also rejected allegations that govt was creating instability or undermining democratic processes. She said opposition parties could not have legitimately won elections and formed govts in Karnataka, Telangana and Himachal Pradesh if elections were compromised or regime changes were possible only through street agitation.She criticised the opposition for holding mock parliaments outside legislatures and walking out of legislative debates instead of using their constitutional mandate. With around 100 elected MPs, she said, the opposition should engage in debates on the floor of the House rather than walk out when govt’s responses challenged its claims.