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January 2013

Scams, retro tax hurt India’s image: Ratan Tata

By Tarunkumar Singhal, Raman Jokhakar
Chartered Accountants
Reading Time 1 mins
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Ratan Tata, outgoing chairman of the Tata group, is “rattled” by India’s current image emerging from scams and retrospective taxation, and wants the government to give an “irreversible commitment” that the law of the land has sanctity.

“Never before has India had that kind of image,” Tata said in an interview. India has been “hurt” by scams, court process and some of the retrospective taxation acts which had given “a sense of uncertainty to investors in terms of the credibility of the government”, he said.

“You get FIPB approval to invest in India and to own a company, you get a licence to operate and then, three years later, the same government… tells you that your licences are illegal and that you have lost everything. This leads to a great deal of uncertainty. Never before has India had that kind of image. So that really rattled me because then anything can happen,” the Tata patriarch said.

India must give an “irreversible commitment” that law of the land has sanctity and the government approval cannot be taken lightly, he emphasised, adding “otherwise India would be taken lightly”. (Source : The Times of India dated 10-12-2012)

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