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Nadars now banking on Jayalalitha

A Ganesh Nadar

It's not 'who you know' but 'WHO you know' that seems to be the motto of the Nadars of Tamil Nadu. Desperate to retrieve their bank, they have approached various people in power. Two weeks ago, the case went to the most powerful man in the country -- the prime minister of India. And guess who forwarded the petition -- the Madam from the South - Jayaraman Jayalalitha.

Such a scene would have been unthinkable six months back when the mediator for the Nadars was J Jayalalitha's' sworn enemy, Tamil Nadu Chief Minister M Karunanidhi.

A long list of VVIPs have supported the Nadars and yet the duo of Shashi Ruia and Shivasankaran of Sterling Computers have held fast to the majority shares in the Tamilnadu Mercantile Bank (formerly the Nadar Bank).

First, the Nadars petitioned the courts last year. The lawyer for the Nadars was P Chidambaram before the latter became finance minister. The case is still pending in the Supreme Court.

Then, on behalf of the Nadars, press baron Sivanthi Aditan approached Bharatiya Janata Party leader L K Advani. Making little headway, the Nadars sought the help Sivanthi's brother, Ramachandra Aditan. The latter requested Karunanidhi to meditate. All this happened in latter part of last year.

Advani's mediation failed as the Nadars could not come up with the money and Karunanidhi's efforts failed when Shashi Ruia went back on his words.

In the meantime, the original buyer, Shashi Ruia, sold the shares to Shivasankaran of Sterling Computers.

As the deal fell through, allegations and counter-allegations filled the newspapers and it was even alleged in the Tamil Nadu assembly that Karunanidhi's nephew, former Union industry minister Maran, was the actual owner of the shares and Sivasankaran was only his front.

The cause of these rumours? At a meeting presided over by Karunanidhi, while the Nadars and Sivasankaran were arguing heatedly, Maran, who was also present, remarked to the Nadars, "With 1 billion, you can start another bank. Why are you fighting for this bank?" The remark was considered highly provocative, and the tide was turning against Karunanidhi and his party, the Dravida Munnetra Kazhagam.

The Nadars hit where it hurts. In the southern districts of Tirunelveli, Sivakasi, Virudhunagar, Madurai, and Tuticorin, posters sprung up condemning the DMK during the Lok Sabha elections. The DMK candidates lost badly.

By now the Nadars had already approached the All-India Anna Dravida Munnetra Kazhagam leader J Jayalalitha.

Within a week of Vajpayee winning the vote of confidence, Jayalalitha led a delegation of Nadars to the prime minister.

According to the head of the Nadar retrieval committee, B Ramachandra Aditan, the prime minister gave them a positive assurance that they would get their bank back. "Vajpayee has assured us that the Reserve Bank will not entertain Shashi Ruia or Sivasankaran pleas, " he said in Madras.

Aditan was effusive in his praise for Jayalalitha. "She is playing a personal and sincere role in the case," he added.

Aditan is expecting a response soon. "We'll pay 600 million first and the rest in 60 days," he said.

The Sivasankaran-Shashi Ruia duo, which did not respect Karunanidhi, are expected to give more respect to the prime minister. But one never knows how the cookie will crumble.

If Jayalalitha can pull off the deal, it will be a feather in her cap. As it is, the Devar community of Tamil Nadu supports her, mainly because of her close friend and aide Sasikala. If the Nadars also align with Jayalalitha, Karunanidhi will have an extremely difficult time beating the strong combination in the next assembly elections.

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