New Delhi, 28 October: Remark of Leader of Opposition Rahul Gandhi on the Tata Group’s ongoing governance dispute accusing the BJP-led government of ‘destroying Tata’ struck the Modi regime where it hurts most that Union Finance Minister Nirmala Sitharaman lost no time accusing him of politicising the issue and warned against branding business and legal matters as criminal without due consideration.

Rahul Gandhi had accused the BJP-led government of treating Indian businesses as its "plaything", alleging that business leaders were afraid to speak out, amid a dispute over the reappointment of N Chandrasekaran as Executive Chairman of Tata Sons.

In a post shared on X, Rahul Gandhi alleged that Tata was being "criminally destroyed" and questioned the silence of business leaders over the matter.

Responding to Gandhi, Union Finance Minister Nirmala Sitharaman advised him against "seeing ghosts everywhere" and politicising every issue. She warned that casually labelling commercial and legal matters was unacceptable.

Sitharaman dismissed the swipe and turned the attack back on Gandhi: "You have repeatedly decried the successes of Indian industry and our entrepreneurs. Now, are you trying to incite our business leaders to join you in spreading distrust and toxicity? 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."

She said the Modi government values the Indian industry as job creators and drivers of economic growth. "Our policies have been tailored to enable enterprise, support industry and encourage investment," she said, adding history is witness to the "shoddy manner" in which Gandhi and his party, the Congress, have demeaned the judiciary.

Earlier in the day, Rahul Gandhi said: “Tata is being criminally destroyed, and no business leader dares say a word. How long will you stay silent? Until they own you? Indian business is not Modi and Shah's plaything. You lack courage. We don't. We will ensure justice for these crimes”.

The remarks come amid a dispute within the Tata Group after Tata Trusts Chairman Noel Tata challenged the validity of Tata Sons’ board resolution reappointing N Chandrasekaran, alleging procedural irregularities in the September 17 meeting.

In a letter dated October 26 to Tata Sons Company Secretary Suprakash Mukhopadhyay, Noel said the agenda circulated to directors did not explicitly mention Chandrasekaran’s reappointment. He alleged that no Selection Committee was constituted as required under the company’s Articles of Association and that the necessary approvals from directors appointed under Article 104B had not been obtained.

Noel also questioned the company’s decision to treat the resolution as final despite unresolved objections and alleged that it had withheld the meeting’s audio and video recordings, final minutes and a certified copy of the resolution despite repeated requests.

“The resolution is void,” he stated in the letter, arguing that the reappointment did not comply with the relevant provisions of Tata Sons’ Articles of Association. 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.

Seeking to establish the sequence of events at the meeting, Noel said the recordings were the only neutral record of the proceedings. He has sought the 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 within seven days.

He has also asked Tata Sons to formally inform the Registrar that the resolution’s validity is disputed by a director nominated under Article 104B and by Sir Dorabji Tata Trust. Noel further urged the company to refrain from taking any additional steps on the resolution until the meeting records are settled.