The war of words between Tata and the Orient Express chain of hotels threaten to become a political quarrel with the Indian administration joining matter with Orient for its disparaging remarks about the Indian chain of hotels.

The Commerce Minister Kamal Nath urged American business assemblies to express disapproval of Orient and teach the super luxury hotel chain a lesson.

Nath said, “Asia is known for hospitality and it is disappointing that people do not understand this. I would urge the US government to enlighten Oriental Hotels about the changing global scenario. They have to understand that today Indian entrepreneurs and intellectuals are respected worldwide and they should also do so.”

Previously, the Tatas have invited a public regret from Orient Express for making invidious notes about the Indian hotel chain.

Recently Orient had froze off a move by the Tatas to encourage a business coalition after they apprehended 11.5% equity in the company stating that tying up with a 'predominantly domestic Indian hotel chain' would grind down its brand value.

The angry Tatas have shot back a letter calling up Orient's opinions as inexact, slanderous and a breach of business governance norms.

R K Krishnakumar, chairman, Indian Hotel said, “It is outrageous the fashion in which they are doing this. We are the single largest shareholder and any responsible company would not do this.”

"We have to be patient and cool. We are the largest single shareholders in Orient. There are a number of other investors as well hedge funds and they have all gathered to support us," Mr. Krishnakumar added.

The group does not make hostile moves we can make an open offer but we do not make hostile moves as a group, he pointed out.

Tatas claim that their properties in North America command higher premium compared with Orient. The company said Indian hotel's EDITDA margins are also higher at 40 per cent against 30 per cent of Orient.