Ratan Tata vs Assam Militancy: How Tata Survived the Crisis

Aakhir Tak – In Shorts

In 1997, Assam’s CM accused Tata Tea of having links with the militant group ULFA.
Tata Group denied the allegations, and Ratan Tata went to Delhi to resolve the crisis.
The “Tata Tapes” leak intensified the controversy, but Tata Group emerged unscathed.

Aakhir Tak – In Depth

The late 1990s were turbulent times for Assam, marred by violent insurgency led by the militant group ULFA. Assam’s Chief Minister, Prafulla Mahanta, accused the Tata Group, specifically Tata Tea, of financially supporting the insurgents. Mahanta claimed that Tata Tea had contributed funds to ULFA, which was involved in violent attacks on Assam’s businesses, including tea estates. Ratan Tata, at the helm of the Tata Group, found himself at the center of this controversy and took immediate action to address the allegations.

The Accusations Against Tata Tea

ULFA had been demanding ransom from various businesses in Assam, and many companies gave in to the extortion due to fear. Tata Tea, the largest tea company in the region, was accused of providing financial assistance to ULFA militants. The Assam government initiated an investigation into these claims, leading to the interrogation of several senior Tata Tea officials.

The Tata Tapes Controversy

The situation worsened with the leak of the so-called “Tata Tapes,” which included telephone conversations between key figures like Nusli Wadia and Ratan Tata. These tapes, published in The Indian Express, suggested that the Tata Group was negotiating with the central government to ease tensions with the Assam government. Tata Tea had also reportedly funded medical treatment for a ULFA member, though they claimed ignorance of her true identity.

Ratan Tata’s Crisis Management

Ratan Tata moved quickly to manage the crisis, meeting with Assam’s Chief Minister and denying any involvement with ULFA. He emphasized that Tata Tea’s contributions were part of their broader corporate social responsibility programs aimed at providing healthcare to the people of Assam. Despite the mounting pressure, Tata Group maintained its stance, and Ratan Tata’s leadership ensured the company’s reputation remained intact.

Ultimately, Tata emerged from the crisis with its reputation preserved, continuing its welfare activities in Assam while distancing itself from the militancy.