Niira Radia quits communication consultancy business

In a surprise announcement, controversial corporate lobbyist Niira Radia, the owner of the PR firm which has Tata group and Mukesh Ambani-led RIL as its top clients, has decided to exit from communication consultancy business.

51-year-old Radia, the owner and promoter of Vaishnavi Group and who is at the centre of a controversy over certain taped conversations in connection with the 2G spectrum allocation, cited "personal priorities" of family and health behind her "painful" decision to quit the PR business.

The announcement in a brief statement today came nearly after a year after she was in the media glare when leaked tapes of her conversations appeared in the media. Although there was no charge against her, she was named as a witness by the investigating agency.

CBI and other investigating agencies including Enforcement Directorate(ED) questioned Radia several times probing her alleged involvement in irregularities in the 2G telecom scam and also her close association with political leaders and corporate honchoes.

In an indication of her influence on the policy makers, Radia was also in news for engaging some renowned retired bureaucrats like former TRAI Chairman and Disinvestment secretary Pradip Baijal and industry experts while focussing on developing a knowledge-based approach in her firms.

"To give precedence to my personal priorities of family and health, I have decided against renewing any client mandates and to exit the business of communications consultancy," the Kenya-born and London-educated high profile lobbyist said in a statement.

"It is a painful decision, taken after much consideration and consultations," the statement added

Also on the prevailing corporate battles in the country, Radia, in an internal mail to all her employees, said "for many years, a few with vested interests have been trying to cause harm to Vaishnavi and me personally. Till the recent past, I would fight back, survive and probably react.

"However, today, I want to give them their victory and let them savour it. If that makes them better human beings thyen I am happy to have brought in a positive change in them," she said. Around 200 employees are on the rolls of Vaishnavi group.

Radia in her statement thanked Vaishnavi group's key clients for their understanding and mutual agreement to bring closure to this decision.

"I am also grateful to them for their support in taking my decision to its logical conclusion, offering assistance in mitigating the damages and thereby fulfilling all our existing contractual commitments," she added.

Reacting to Radia's decision, Tata Group chairman Ratan Tata said, "The Tata Group respects the personal wishes of Niira Radia in not renewing any client mandates. She has built Vaishnavi from scratch into the company it is today, often subordinating her personal and family interests in favour of her clients' priorities."

Vaishnavi has had the PR mandate of the Tata Group since 2001 during which period it contributed significantly to the building of the Tata Brand, he said. Vaishnavi's engagement with the Group has been ethical and satisfactory, he added.

A Reliance Indutries spokesman said, "We regret the decision of Niira Radia to discontinue her association with the business of communications consultancy and not renew any of her client mandates.

"We have enjoyed a professional and fulfilling relationship with Radia and her team over the last three years."

"Radia's commitment has been very impressive and she has always led her team in a manner that tactical developments do not lead to a de-focus on the strategic issues.

"We do appreciate and respect her wishes for a compelling need to focus on her family and personal issues. Radia leaves behind a very capable team and an indelible mark on the communications consultancy business...., the RIL spokesperson added.

The Radia tapes controversy related to the telephonic conversations the high profile PR consultant had with senior journalists, politicians, and corporate houses and taped by the Income Tax Department in 2008-09 to allegedly influence the decision to make A Raja as the Union Telecom Minister.

According to the transcripts of the tapes, Radia allegedly lobbied against the reappointment of Dayanidhi Maran to the post of Union IT and Communications minister.

The tapes had led to accusations of misconduct by many of these people.

After getting authorization from the Home Ministry, the Income Tax department tapped Radia's phone lines in 2008-2009 as part of their investigations into possible money laundering, restricted financial practices, and tax evasion.

Radia was grilled by the Enforcement Directorate sleuths regarding financial transactions and shareholding patterns of her firms and her statement recorded after a seven-hour session. This questioning session was reasoned out to be due to the 2G spectrum allotment scam.

The questions were framed by ED based on the information collected from the document that had been submitted by Radia to the agency.

According to sources, around 30 employees are likely to join Reliance Industries as a communication team. Some others are planning to join the Tata group.

However this could not be confirmed. Some seniors may be retained to oversee the transition process while exploring opportunities with some of the client groups, sources added.

Besides, Tatas and RIL, Vaishnavi's clients include Hindustan Construntion Company, Lavasa Township near Pune, and Deepak Fertilisers.