Modhvadia made the revelation in the Gujarat Assembly and said that Tata's proximity to Radia led to them walking away with deals worth Rs 29,000 crore. In what can be called a major set back to one of India's biggest corporate houses, the Tata Group and an allegation that could shed light on the clandestine relation between politicians and corporate houses.
The MLA also claimed that he had photographs to prove the same of Ratan Tata, Gujarat Chief Minister Narendra Modi and Niira Radia just before they signed the so-called deal in 2008.
The furore caused in the Assembly due to Modhvadia's allegations led to the Urban Development Minister Nitin Patel requesting the comments to be deleted from the record of house proceedings.
During question hour, however Modhvadia refused to name Niira Radia and simply remarked that in order to oblige a lady from Delhi, the Gujarat government doled out benefits to the Tata's to the tune of Rs 29,000 crore.