Nirmala Sitharaman Hits Back at Rahul Gandhi Over Tata Row, Accuses Him of Spreading ‘Toxicity’

Finance Minister says commercial and legal disputes should not be politicised as Congress leader accuses Modi and Shah of allowing the Tata Group to be “criminally destroyed”

Union Finance Minister Nirmala Sitharaman has hit back at Congress leader Rahul Gandhi over the Tata leadership dispute, accusing the Leader of the Opposition in the Lok Sabha of spreading “distrust and toxicity” towards Indian industry and entrepreneurs.

The exchange followed Gandhi’s criticism of Prime Minister Narendra Modi and Union Home Minister Amit Shah over the dispute at Tata Sons, the holding company of the Tata Group. Gandhi alleged that the conglomerate was being “criminally destroyed” and questioned why business leaders were remaining silent.

In a post on X, Gandhi warned business leaders against allowing the government to treat Indian businesses as its “plaything”.

“Indian business is not Modi and Shah’s plaything. You lack courage. We don’t. We will ensure justice for these crimes,” Gandhi wrote.

Sitharaman Accuses Rahul Gandhi of Politicising the Dispute

Responding to Gandhi, Sitharaman urged him not to politicise commercial and legal matters or casually describe such disputes as criminal.

The Finance Minister accused the Congress leader of undermining confidence in Indian businesses and entrepreneurs, while defending the Modi government’s approach to industry, enterprise and investment.

She contrasted the Congress-era “Licence-Quota Raj” with the present government’s policies, which she said were aimed at supporting industry and investment.

Sitharaman also called on political leaders to support businesses, farmers and young people rather than create distrust in India’s industrial ecosystem.

Referring to the role of the judiciary in resolving disputes, she urged Gandhi to “refrain from seeing ghosts everywhere”.

What Is the Tata Sons Leadership Dispute?

The political exchange comes amid a disagreement over the reappointment of N Chandrasekaran as executive chairman of Tata Sons.

The Tata Sons board approved Chandrasekaran’s reappointment on September 17. His current term is scheduled to end in February 2027.

However, Noel Tata, chairman of Tata Trusts, which holds about 66% of Tata Sons, opposed the move and sought the formation of a selection committee to identify a successor.

According to reports, Noel Tata said Chandrasekaran had informed him on August 12 that he did not intend to seek another term. The trusts had accepted that position and wanted a selection committee to be constituted.

The Tata Sons board subsequently asked Chandrasekaran to reconsider and approved his reappointment again. Four directors voted in favour of the resolution, while Noel Tata voted against it.

Noel Tata Challenges Reappointment Resolution

The dispute escalated on October 26, when Noel Tata sent a letter to Tata Sons company secretary Suprakash Mukhopadhyay challenging the validity of the resolution and the procedure followed in approving Chandrasekaran’s reappointment.

The disagreement over the leadership of the holding company has since triggered a political exchange, with Gandhi accusing the government of allowing the Tata Group to be undermined and Sitharaman rejecting his allegations as an attempt to politicise a commercial and legal matter.