FM Sitharaman Urges Businesses To Resolve Disputes Through Stronger Governance

Finance Minister Nirmala Sitharaman has urged Indian businesses to avoid turning every disagreement into litigation and instead strengthen Corporate Governance and mechanisms for resolving disputes within the boardroom.

Sitharaman said good governance depends not only on external codes but also on how institutions conduct themselves and the standards they set for their own operations.

She called on businesses to engage constructively with the government and regulators, while noting that legal recourse would remain available when required. “Every disagreement need not be a litigation,” she said.

Finance minister also emphasised that trust between businesses and regulators cannot simply be demanded but must be built through conduct on both sides. Her comments came amid heightened attention to corporate governance and boardroom disputes involving major Indian businesses.

The Finance Ministry later clarified that her remarks were not related to the ongoing leadership issues within the Tata Group.