Didn't Want To Bribe My Way Into Airline Business: Ratan Tata

[kesav 127]

Didn't want to bribe my way into airline business: Ratan Tata

Tata Group chairperson Ratan Tata today said he did not enter the airline business as he was not comfortable with the idea of bribing Rs15 crore to a minister, as had been suggested by an industrialist.

He regretted that despite being a pioneer in the airline industry, the group faced enormous problems in setting up a domestic airlines in collaboration with Singapore Airlines.

"We approached three prime ministers also. But an individual thwarted our efforts to form the airlines," Tata said, recalling how he spurned the suggestion by a fellow industrialist.

He, however, did not name the individual.

Amid Tatas' efforts to set up a joint venture with Singapore Airlines, a fellow industrialist had said: "You are stupid people. The minister was asking for Rs15 crore. Why didn't you pay the money?"

Narrating the incident, Tata said, "I did not want to go to the bed knowing well that I set up an airlines by paying Rs15 crore."

Ratan Tata's predecessor, JRD Tata, had set up the first commercial airlines of India 'Tata Airlines' in the 1930s and that was later in the 1950s taken over by the government and turned into Air India.

Responding to questions about how he succeeded without compromising ethics and values after delivering a lecture on 'India in 21st Century: Opportunities and Challenges' here, Tata, 72, said he did not have a methodology in this regard, but went on to narrate the entire history of how Tatas failed to re-enter the aviation business.

After taking over the reins of the group, Ratan Tata had tried at least on three occasion to pursue the aviation business and accordingly moved the government of the day in 1995, 1997 and 2001.

The last time (2001), it was the BJP government when Tatas and Singapore Airlines withdrew as sole bidders their joint bid for Air India, citing political opposition to the sale.

Earlier in 1995 and subsequently in 2000, the consortium had made concerted efforts to take stake in Air India, but the controversies that engulfed disinvestment through a strategic sale in a public sector undertaking and the unions' agitation prevented materialisation of the bids.

Tata, who took over the group in 1991 and has since overseen the global expansion of the group, said he doesn't want to change his retirement due in 2012.

"I don't want to change my deadline I set for my retirement. There are lots of sacrifices, one has to make in terms of personal life. I wanted my life back. I want to enjoy the things that I wanted to do," the top industrialist said here.

He said there are two kinds of people, one who goes back home on his own feet, and another who goes in a box. "I have told my shareholders that I do not want to go back in a box," he said.

In August this year, the Board of Tata Sons Ltd had formed a selection committee comprising five members, including an external member for eventually deciding on a suitable successor to Ratan Tata.

"There is no such thing as indispensably individual. The day I succeeded JRD Tata, I felt in very large shoes. I knew that I cannot be another JRD and I have to be my own person", Tata said in reply to a question after delivering a lecture here.

"I believe my successor will be his own person and hopefully will do things for the country and the group the way we have been doing till now or much better.

"I ferociously wanted to ensure that my successor has total commitment for ethics and values, (that) we fought for years now," Tata said.

To a question if he saw similarities between what his group faced in Singur and the 26/11 attacks in Mumbai, Tata said though there is no similarity between the two things, but he was a victim and survivor of both the tragedies.

Tata motors had to move the mother plant of its small car Nano from Singur to a site in Gujarat, following violent protests spearheaded by Trinamool Congress against land acquisition.

To another question, Tata agreed that the disparity between haves and have-nots is increasing, and said that it is the responsibility of each one of us who have to do something for those who do not have.

source :: http://www.dnaindia.com/india/report_didn-t-want-to-bribe-my-way-into-airline-business-ratan-tata_1467032

It's refreshing to know that there exist at least few people who cares about ethics and values in the muddy corporate world.

:clap:

Edited November 15, 2010 by kesav

[thilak.kmb 19]

It is well known that Tatas will not be paying money for extra considerations. I know a case where a state transport is imposing Rs 25 lakhs penalty for delayed delivery of buses as per the agreement. Tatas have accepted the penalty and were ready to pay.Meanwhile the ruling party comrades started negotiating and asked for a party fund of Rs five lakh to waive off the 25 lakh penalty. You know what happened?. Tatas have refused this offer and paid penalty.

That is TATA. They can survive without paying bribe.

Now here in this forum how many of us are not willing to pay bribe to get things done? How many of have got the patience to achieve the results without bribing?

Me? No. Not possible.

the big question is who is responsible?

THE GIVER? OR THE TAKER?

Edited November 16, 2010 by thilak.kmb

[dkaile 1,051]

people are so naive to believe all the crap shown on tv... no business can survive in india without giving bribe... either directly or indirectly... whether tata or anyone else... some give more some less... some give in cash some in kind... thats the naked truth...

[city02 63]

BOTH are responsible but primarily the ASKER or initiator should be more accountable.

I'll admit if I was offered rs. 5 L to settle dues of 25 L, I would take the offer [assuming I even had the 5 L to begin with].

But if it was rs. 5 to settle rs. 25 of fines then i would rather pay the fine.

So 5 L for Tata is equivalent to rs 5 for me I suppose.

It would have been a harder choice if the stakes were higher:

say rs. 5 Cr to settle 25 Cr of penalty ...

needless to say I think we have a good idea of how reliance would choose!

[sgiitk 32]

By the looks of it the cat is out of the bag - quite likely it was CM Ibrahim! Of course he has tried to justify it.

[rajanmehta 4,056]

needless to say I think we have a good idea of how reliance would choose!

Reliance would have got the rule amended to insert the word "Incentive" in place of "Penalty"!!

And that too 5 times the original amount

[Greatest 55]

Tatas are by far the best corporates in India.. Pioneers and also the best...

[raccoon 53]

It is well known that Tatas will not be paying money for extra considerations. I know a case where a state transport is imposing Rs 25 lakhs penalty for delayed delivery of buses as per the agreement. Tatas have accepted the penalty and were ready to pay.Meanwhile the ruling party comrades started negotiating and asked for a party fund of Rs five lakh to waive off the 25 lakh penalty. You know what happened?. Tatas have refused this offer and paid penalty.

That is TATA. They can survive without paying bribe.

Now here in this forum how many of us are not willing to pay bribe to get things done? How many of have got the patience to achieve the results without bribing?

Me? No. Not possible.

the big question is who is responsible?

THE GIVER? OR THE TAKER?

The giver is more responsible. As long as you keep giving, there will be more than enough takers. So those who give bribes should not grumble about the state of affairs.

people are so naive to believe all the crap shown on tv... no business can survive in india without giving bribe... either directly or indirectly... whether tata or anyone else... some give more some less... some give in cash some in kind... thats the naked truth...

+ 1 to the part about believing "all the crap shown". Can't buy it so easily. The best I'd give them is benefit of doubt...

Edited November 16, 2010 by raccoon

[Pulkit Gupta 47]

Every corporate has its good and bads. this is only one side.

we know now that tata has refused to give 15crs as bribe because they had told this but they will never told how much bribe they pay to survive in this corporate world. Tata one of the biggest corporates so their fees to remain there will also be bigggg which they are never going to disclose. and as dhiraj sir said no business can survive without giving bribe this is the naked truth of today

[rajanmehta 4,056]

The giver is more responsible. As long as you keep giving, there will be more than enough takers.

+ 1 to the part about believing. Can't buy it so easily. The best I'd give them is benefit of doubt...

So dear raccoon puts belief into practice. Very rarely writes +1 and then never actually clicks on button

[HetalDP 947]

people are so naive to believe all the crap shown on tv... no business can survive in india without giving bribe... either directly or indirectly... whether tata or anyone else... some give more some less... some give in cash some in kind... thats the naked truth...

Exactly... and its also in Corporates too

[kshah 452]

I have seen two projects of tata one got shelved off and one got delayed for 5 or 7 years - just because they did not bribed. They are TATA HONDA car project (Year 1985 or 1987 - India got sierra and estate from same plants) second one was Steel plant in Silvassa (D&NH) of VOLTAS.

Tata's are known to pay price of not bribing officials. I believe because one think corrupt or practices corruption, upfront comment about every one should be avoided.

[HetalDP 947]

Adding to Kalpak

TATA Nano was the same case

[kalpeshaparmar 66]

If Ratan Tata & whole Tata group had paid the bribes they would have been in top.......

As they are not after money..........Ratan Tata & his family owns on less than 5% in Tata Group...........

Look at Singur Plant, Airlines it must have been tribute Jamshedgi Tata, Even with Tata Defence co., Tata's Titanium Refining project, Same with Tata Docomo for Delhi & many Circles........

Many other in last 50 years.....................

[dkaile 1,051]

I believe because one think corrupt or practices corruption, upfront comment about every one should be avoided.

same should have been avoided by you too unless you are Ratan Tata himself, defending his point... or you have proof for the above comment you made...

Edited November 16, 2010 by dkaile

[KanagaDeepan 1,084]

Tata's are known to pay price of not bribing officials.

Very TRUE... Thatz why Ambanis are ahead of Tata.. See the Delhi-circle of TataGSM for example... (TataDocomo got Delhi license first, but startup spectrum was awarded to RCom.. Even now there is a talk that remaining (Last 5MHz, I think--but NOT sure) spectrum was going to be given to RCom only and NOT to TataDocomo, for which TATA is opposing---- Got this Info in one Kesav ji's post)

[prafull4u 24]

Tata's are known to pay price of not bribing officials.

Very TRUE... Thatz why Ambanis are ahead of Tata.. See the Delhi-circle of TataGSM for example... (TataDocomo got Delhi license first, but startup spectrum was awarded to RCom.. Even now there is a talk that remaining (Last 5MHz, I think--but NOT sure) spectrum was going to be given to RCom only and NOT to TataDocomo, for which TATA is opposing---- Got this Info in one Kesav ji's post)

Ha Ha As if the whole TATA empire was build without giving a single penny of Bribe, wake up people. ratan tata only disclosed fact abt the project for which he denied paying BRIBE, didnt talked abt project for which he paid...

And for info TATA group is the largest corporate group not the ambanis.... no point in debating which grp pays the bribe.....

Yup we can debate who give the highest bribe

[taunk23 41]

i stay in Jamshedpur City (a.k.a Tatanagar ) The TATA STEEL PLANT is here.

the city is maintained by the Tatas with a budget of 300 crores p.a.

if u calculate the working days in a year approx. 300 days then the per day

budget is 1 crore for the whole city.

Jamshedpur is a green and clean city , the best city in the whole of Jharkhand.

But the State of Jharkhand completed 10 years day before yesterday but no major developments

has taken place, its like a decade lost.

[kesav 127]

+1 to thilak.kmb for highlighting state transport bus story

+1 to kshah for higlighting TATA HONDA car project and Steel plant in Silvassa (D&NH) of VOLTAS.

+1 to kalpeshaparmar for highlighting Titanium Refining project

Since rimwebians are from different states of this vast country, it's important for each one to share the glimpse of TATA's commitment to values seen at different places across India.

Hope to read more such references.......

These references are like lotuses, which are very rare to see nowadays in the dirty pond of corporate world.

[raccoon 53]

The giver is more responsible. As long as you keep giving, there will be more than enough takers.

+ 1 to the part about believing. Can't buy it so easily. The best I'd give them is benefit of doubt...

So dear raccoon puts belief into practice. Very rarely writes +1 and then never actually clicks on button

Uhhh... In fact I have used that button at least a couple times if not more on couple of YOUR posts that I'v found useful! Though I'v not been liberal with that button, in general.

It seems everyone here has a stance about Tatas without any real evidence. And many seem to badly want to believe their alleged piety without any real evidence either. One reason I'm not a Tata fan is this - Don't let TATA terminate the turtles. Some here believe that Tatas are not after money. If they are not after money then I guess they have some inexplicable congenital hatred towards the last few poor Olive Ridley Turles?

If fact, since I read about the above, I'v kinda avoided buying Tata products, when alternatives were available.

Edited November 16, 2010 by raccoon

[kesav 127]

Nobody here says TATA is not behind money. After all they too are business people.

Most of the people here has common understanding that they're not inclined to bribing their way out.

After all, business without bribe should be possible and probably TATA is the one and only example for that in corporate India.

As for as environmental issues are concerned, TATA is having problems in many recent projects.

Environmental issues (vs Industrialization) are quite new for the whole world, so let us give some time for corporate India to habituate themselves for doing business within green parameters.

I'm pretty much sure TATA might have already setup a separate wing for environmental issues for new upcoming projects and expansions.

[raccoon 53]

If Ratan Tata & whole Tata group had paid the bribes they would have been in top.......

As they are not after money..........Ratan Tata & his family owns on less than 5% in Tata Group...........

The above thought is echoed by many...

Environmental issues (vs Industrialization) are quite new for the whole world, so let us give some time for corporate India to habituate themselves for doing business within green parameters

Time is NOT what the Olive Ridleys have on their side. Corporate India can take all the time it wants, but it won't bring the LAST remaining Olive Rideys back. In fact time is most certainly not what corporate India (or the planet for that matter) has on its side. It may already be too late. Let us not even think about requiring more time on such a critical issue!

Edited November 16, 2010 by raccoon

[kalpeshaparmar 66]

Tata is the largest group no doubt but it has acquired most of the companies in last decade..........

[kshah 452]

I believe because one think corrupt or practices corruption, upfront comment about every one should be avoided.

same should have been avoided by you too unless you are Ratan Tata himself, defending his point... or you have proof for the above comment you made...

Arey aap to bura man gaye. It was a general statement and you took personally. Anyways, my nature is not to comment about any thing or any one based on my behaviour or perception.People usually discuss perceptions, but fact remain is nothing is ultimate. Values changes from time to time.

[dkaile 1,051]

^

Nahi Yaar, you are such a close friend... tumse jyada der to koi bhi gussa nahi reh sakta...

But my point is that though I respect the Tata group very much and believe they are the highest in ethics and quality of services to their customers, it is very hard for us to comment with 100% surety that they must not have given a single paisa bribe ever either in cash or kind... In Indian businesses it is inconceivable to survive without arm twisting of some kind and that is a fact... I can say with certainty as I am one of "bhagidaars" of this system... I started with high moral values fresh after doing my mba and trying to implement Kotler to the hilt... but soon learnt the "hard" way the truth about running the businesses here... that is not to say that I ever compromised with the quality of goods or services that I rendered but some facts of life cannot be swept under the carpet...

Edited November 17, 2010 by dkaile