Money & Banking
Subramanian Swamy’s 6-point ‘chargesheet’ seeks Raghuram Rajan’s ‘termination'
BJP MP Subramanian Swamy, who has the Reserve Bank of India (RBI) governor in his crosshairs, has fired off a six-point 'charge sheet’ to the Prime Minister seeking Dr Rajan’s ‘termination’ even before his term ends. This letter is a follow up to his earlier one which insisted that Dr Rajan’s term should not be given another term as governor.  The issue of Dr Rajan’s second term has attracted unprecedented media attention, with Amul, a government-run milk cooperative also jumping into the fray with pitch for another term. 
 
Here is what Dr Swamy has alleged: 
(a) Dr Rajan raised interest rates at a crucial stage leading to recession in small and medium industries which led to massive unemployment of semi-skilled labour. For a labour intensive economy like India, rising unemployment is as wilful and anti-national as rising inflation and it shows RBI policy to have been insensitive
 
(b) Dr Rajan insisted on permitting Sharia compliant financial institutions to be set up. The Prime Minister however, intervened and ordered a stay on 1 December 2014.
 
(c) Dr Rajan has continued to hold on to his US Green Card which is essentially a transitional visa arrangement for acquiring US citizenship. While holding office as RBI Governor, he has been continued annually to renew his Green Card by making the mandatory trip for at least one day residence in USA. More patriotism is required from a senior Government policy-maker in India like Dr Rajan!
 
(d) As a senior man in the Indian government, he has not restricted himself to correspondence with his office email address. He has an unsecure personal email address [email protected] from University of Chicago. Using this address he has sent confidential and sensitive financial information to friends and associates around the world in reckless disregard of his official duties as RBI Governor.
 
(e) Despite being a government official, he has been publicly disparaging of the BJP government. Is he frustrated? Does he have a grievance in spite of holding high office? He has been involved in pejorative sarcasm instead of being part of the accountability required of senior men.
 
(f) Dr Rajan is a member of the US dominated Group of 30 (www.group30.org ) which is known to defend the US’ dominant position in the global economy. It has been observed that Dr Rajan while taking policy decisions has been involved in a sell-out to the foreigners, in particular, to the US. While no pecuniary gain has been made by Dr Rajan for such policy swinging, it reflects a clear lack of patriotism and confidence in India as a growing economy.
 
At a time when the debate is about a second term for the RBI Governors, Dr Swamy ends the letter by saying that it is in India’s national interest to “terminate the tenure of Dr Rajan”.

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COMMENTS

MG Warrier

12 months ago

This is a great idea. Let us wish Dr Swamy happiness in his endeavours. I remember Dr Swamy suggesting sometime back that 'Dr Rajan should be sent back' and Dr Vaidyanathan(a familiar face for Moneylife readers) should be made RBI Governor. Lord Clive was answering to a loger charge sheet back in England. At some stage, he wondered, "After listening to the 'opportunities' , I find even the charges are too insignificant"
Remembered, when I tried to connect Dr Rajan's contribution to India's financial sector and economic development after he came back to India and the six charges 'framed' by the Hon. RS MP. I maintain, GOI has been acting, by and large, with mturity in matters like this.

REPLY

Ramesh B Mhadlekar

In Reply to MG Warrier 12 months ago

I have sent to Swamyji the documents received under RTI proving recruitment Scam under the Regime off Raghuram Rajan

MG Warrier

In Reply to Ramesh B Mhadlekar 12 months ago

Thanks...May be it may help Swamyji. His 6-Point CS was weak!

Ramesh B Mhadlekar

In Reply to MG Warrier 12 months ago

Yes also Raghuram Rajan is abusing his power while allowing his wife or spouse and children to use the red beacon official car meant exclusively for him.

Suketu Shah

In Reply to Ramesh B Mhadlekar 12 months ago

Great work done by you.Dishonest people in India always true to prove(in vain) that honest people are dishonest.Well done!Keep it up.

Ramesh B Mhadlekar

In Reply to Suketu Shah 12 months ago

Wife of Dr. Raghuramrajan is abusing the RED Beacon official Car meant for the Governor by using the same for her personal use.

Kingshuk samanta

12 months ago

subramanyam swamy is not a honest man.his past records are dubious.rajan is one of the best rbi governor we indians ever had

REPLY

Ramesh B Mhadlekar

In Reply to Kingshuk samanta 12 months ago

Is Mr. Raghuram Honest? He is involved in Recruitment Scam in RBI and the same is proved by RTI documents.

Srinivasan Subramanian

12 months ago

After planting cronies in Central universities, CBI, Bank Boards, dangerous plan to invade RBI by removing Governor Rajan.All to help donor Corporates with lower interest

REPLY

Nataraj S K

In Reply to Srinivasan Subramanian 12 months ago

So that one more RSS Loyalist can be brought into this Premier Institution.

Suketu Shah

1 year ago

1)Check Dr Swamy's track record.Whatever he has stated in the past has turned out to be correct.

2)Also why are congress supporters creating the impression that only Rajan can be RBI governor and no one else?Clearly Rajan is working against the interest of the country and his bosses are worried once he goes the new RBI governor appointed by NaMo wl turn the economy on its head in 2 yrs.

Anand Vaidya

1 year ago

I think Swamy is usually ahead of the curve... and always right. I will support Swamy's stand on Rajan.

SuchindranathAiyerS

1 year ago

Quite independently here is what I has to say a few weeks ago:

1) Rajan is Anti-India.He joined Obama's tolerance chorus like any Body Shopping Magnate or other PANGOLIN* Notable, Awardee or other Camp Follower. This is unacceptable in a Governor of the Reserve Bank of India. In doing so he has abused Indian hospitality like a worthless Black Yank or Italian Bar Maid,

2) Instead of doing Central Banking, which should be felt not seen, he is seen and not felt. For example instead of watching M2 (Money supply), he is conducting public classes in Dosa Economics to distract the already diseducated public from the menace of inflation.

3) Instead of auditing Banks and Banks' lending norms and methods, he is raising political canards against individual borrowers like a politician or a PANGOLIN journalist.
In brief, Rajan seems more of a Bollywood Khan, a Tendulkar Group Captain or a Nehruvian Romila Ashokan than a Central Banker. India already has too many of these.

And what I had to say several months ago:

Raghu Ram Rajan should remember that he is a Central Banker and neither a politician nor a Nehru-Gandhi "Economist". Central Bankers should not be heard but be felt in the value of the rupee, the fiscal discipline of the Government and the integrity of the Banking system. Instead of taking time off from his work to lecture on inflation and dosas or wag a "tolerance" finger at the Prime Minister as part of the Obama-Sonia "parivar-that-loots-together-to-stay-together" chorus of Fifth Columnists, he should study M. H. De Kock, R. S. Sayers, Beckart, Altman's "Z", Tamari's Index of Risk etc. and learn to measure up to his job. Unless, of course, he is as erudition, integrity, culture and arithmetic challenged as India's Indian educated Judiciary, Bureaucracy, Police, Professors and others appointed and promoted on the basis of birth and Tehsildar's certificates. His instruments are OMO, BR, Audit, fines, and capping government over drafts. Not his mouth.

*Note: PANGOLIN: An enemy of India who believes in inequality under law, exceptions to the rule of law and persecution of some for the benefit of others. At present, the sole purpose of the Indian Republic, Constitutional or otherwise, is to pamper and provide for certain constitutionally preferred sections of society who the British found useful to hold and exploit India at the cost of those who the British hated and persecuted. The Pangolin is a creature that is unique to India and feeds on ants that are known in nature to be industrious and hard working if not quite as fruitful as bees who flee to better climes. (PANGOLIN is an acronym for the Periyar-Ambedkar-Nehru-Gandhi-Other (alien) Religions-Communist Consensus that usurped the British Mantle and has worn it with elan to loot, plunder, and rape India since 1921 and re write History and laws to their exclusive benefit since 1947)

PPM

1 year ago

I am not Swamy supporter and what he is telling now is correct. Raghuram rajan is an Economic Hit Man (EHM) and he is working against the interests of India. He should be removed immediately from the position of RBI governor.

Ramesh B Mhadlekar

1 year ago

Swamiji you can include the 7 th charge of Mr Rajan being involved indirectly as head of RBI in recruitment scam of class IV employees which is contrary to Art 14 and 16 of the Indian constitution and also the SC decisions in the matter of Public employment.

REPLY

Ramesh B Mhadlekar

In Reply to Ramesh B Mhadlekar 1 year ago

In similar recruitment Scams IOB officers and union leaders have gone to Jail and also chauthals are living example, but RBI officials are roaming scot free. It appears laws are applied according to persons and their face value in India. I have RTI's to prove the recruitment scams of RBI.
\

Nataraj S K

1 year ago

I would request readers to read Anuvab Pai's piece,on Page 12 of today's ET, "STAY ye chosen one"-- is a superb one Re butting Swamy's rambling nonsense. The end line of the article is very aptly superb,and I recommend readers to savour the" sweet,buttery " ending note.

Nataraj S K

1 year ago

I would advise Dr. Swamy to return to the U.S.A., to resume his teaching assignment, which he gave up many years back. He needs to brush up on what changes the world's economy's been through since the time he left. It will surely serve him well,and do the country a lot of good.

REPLY

B. Yerram Raju

In Reply to Nataraj S K 12 months ago

Who will take him as economics professor at Harvard unless it has decided to teach nonsense through Swamy? Swamy is after all living at the munificence of the ruling party by sitting in Rajya Sabha. How can he represent the voice of entire India and call a person guarding the economy as gatekeeper of the Indian Financial System? If he has accepted rewards so were many in the past from several Universities. Holding a university email address as an alumni is not bad. How can Swamy say that the mails sent through this mail address carried information against the interests of India and Indian economy unless he has hacked them? Reading other's emails sent on personal count is a crime. Swamy has no ethical ground to question Rajan. He has done commendable job during his tenure and in spite of fiscal profligacy and changed GDP accounting, he kept the economy hold its head high. His comments are against exuberance and complacency of the powers that be.

Ramesh B Mhadlekar

In Reply to Nataraj S K 1 year ago

You are supporting a man who does not believe in Constitution of India or SC decisions, he has no place in India and his supporters should go along with him from India. He is involved in Class IV recruitment scam ion RBI.RBI is not a private shop where any Tom and Dick and Harry can absorb near and dear ones of Union leaders.

SAMUEL WARBAH

1 year ago

Even Jim Rogers wish that Dr.Rajan was Chairman of the Federal Reserve. So much about the respect that people have on Dr.Rajan.

Nilesh KAMERKAR

1 year ago

Not even a single person has been able to prove Dr Swamy wrong. Why?

REPLY

Ramesh B Mhadlekar

In Reply to Nilesh KAMERKAR 1 year ago

He is absolutely right, the earlier he is sacked it is better for India.

Ramesh B Mhadlekar

In Reply to Ramesh B Mhadlekar 1 year ago

Dr. R Rajan is a liability to India, he pretends to be well wisher of Indian economy but he is not.

Cabinet approves National Capital Goods Policy
The union cabinet on Wednesday approved National Capital Goods Policy aimed at increasing capital goods production from the current value of Rs.2,30,000 crore to Rs.7,50,000 crore by 2025.
 
"The policy envisages increasing exports from the current 27 percent to 40 percent of production. It will increase the share of domestic production in India's demand from 60% to 80% thus making India a net exporter of capital goods," said an official statement.
 
Also with an aim to improve technology depth across sub-sectors, increase skill availability, ensure mandatory standards and promote growth and capacity building of MSME, the National Capital Goods Policy envisages to raise direct and indirect employment from 8.4 to 30 million.
 
"The policy will help in realising the vision of building India as the world-class hub for capital goods. It will also play a pivotal role in overall manufacturing as the pillar of strength to the vision of 'Make in India'," said the statement.
 
The Department of Heavy Industry mooted the idea of National Capital Goods Policy to Prime Minister Narendra Modi during a 'Make in India' workshop in December 2014.
 
Likewise, the same department will meet the objectives of the approved policy in a time-bound manner, procuring the green signal for schemes according to the roadmap of policy interventions, the statement said.
 
"The aim of the policy is to create game-changing strategies for the capital goods sector. Some of the key issues addressed include availability of finance, raw material, innovation and technology, productivity, quality and environment-friendly manufacturing practices, promoting exports and creating domestic demand," the statement added.
 
Reacting to the development, FICCI president Harshavardhan Neotia said: "India has the potential to be the net exporter of capital goods as against the net importer currently. National Capital Goods Policy is definitely the need of the hour."
 
He added that the National Capital Goods Policy will propel the capital goods sector and go a long way in achieving the vision of 'Make in India'.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Government approves financial restructure of HSCL; and takeover by National Buildings Construction Corporation
The government on Wednesday approved the financial restructure package for Hindustan Steel Works Construction (HSCL).
 
The decision was taken by the union cabinet in its meeting chaired by Prime Minister Narendra Modi.
 
The cabinet also approved HSCL's takeover by National Buildings Construction Corporation (NBCC).
 
According to the cabinet, under the approved proposal, the government will write off the accumulated losses of the company, which amount to Rs.1,585 crore.
 
"After writing off of the accumulated losses, the equity and paid up capital of HSCL will become Rs.34.3 crore," the cabinet said in a statement.
 
"NBCC will infuse funds of Rs.35.7 crore as equity into HSCL. HSCL will become subsidiary of NBCC. The equity and paid-up capital of HSCL will become Rs.70 crore." 
 
The statement said the move will reduce the shareholding of the government in HSCL to 49%.
 
"NBCC and HSCL are Government of India enterprises with similar lines of business activities," the statement said.
 
"The decision will benefit in economies of scale for NBCC and would assist in better manpower utilisation."
 
The statement further said that after the takeover, HSCL will be able to execute its pending projects. 
 
"Government of India will provide one-time support of Rs.200 crore for settling term loans availed from commercial banks," the statement added.
 
"It will also bear the contingent liability of Rs.110 crore (approximately) as decided by the Supreme Court in compensation for VRS (voluntary retirement scheme) liabilities."
 
In addition, the government will also pay the outstanding interest on the bank loans for the financial year 2015-16 amounting to approximately Rs.44 crore.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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