RADIA GATE - BIO VI

The battle in Singur was a case in point of how Radia made friends across the spectrum. She was close to Left leaders—and was apparently working on other business deals with them—but moved quickly to shift the Nano plant to Sanand in Gujarat (see box). As the 2G scam tapes reveal, she was close to N.K. Singh of the JD(U); and even talks about telling Uddhav Thackeray what to do. She also mentions Madhu Koda, then Jharkhand’s chief minister, saying in one conversation that “I know what we fought in Jharkhand. I have been to Ranchi and I have met Madhu Koda. He won’t agree on anything less than (Rs) 150 crore. We had to go to court. He said you pay me (Rs) 150 crore, you tell Ratan Tata to pay me through his contractors.” Tata Steel says it has never got any mining lease during Koda’s tenure.

As the spotlight intensifies on Niira Radia, senior retired bureaucrats working for her are facing some uncomfortable questions. A senior former bureaucrat recalls that former trai head Pradip Baijal and ex-economic affairs secretary C.M. Vasudev told him they were joining the “lady who handles the advertisements for Tatas...Baijal seemed to know Radia better. They mentioned that the offer was very good as no investments would be required—yet after two years they would be partners in the company by virtue of sweat equity”. Ajay Dua, former secretary, Department of Industrial Policy and Promotion, who took premature retirement to join Niira Radia’s team, is denying having done any lobbying “whether in my advisory or director’s capacity nor am I inclined to do it”. Dua, however, points out that “in India, lobbying has not been declared illegal”. Similarly, C.M. Vasudev has said that he is no longer associated with Radia as “I did not opt for sweat equity”. He does, however, admit the tapes do “create (a) reputation issue”.
As Niira Radia fights the accusations against her, it’s her reputation that has taken a battering. “This tapes matter will not lead anywhere,” says a veteran lobbyist, “there are too many powerful people involved”. Tapes don’t stand up well in courts of law. But Niira Radia faces a bigger test, of reclaiming her “effectiveness”. “She’s going to be in trouble for a long, long time,” says a former airline CEO. The spotlight is now on her clients, many of whom prefer to do business quietly. It’s going to be a long, hard battle for Niira RadiA

“One person thwarted our efforts to form the airlines,” Tata said recently. The reference was to Naresh Goyal