Below is a copy of the letter written by Dr. Swamy to the Prime Minister Narendra Modi, listing six reasons on why Rajan’s term should not be renewed…
Shri Narendra Modi May 26, 2016
Dear Prime Minister:
In continuation of my earlier letters on the present RBI Governor tenure, I am making in this letter six specific allegations against the present Reserve Bank Governor Dr. Raghuram Rajan which, in my considered opinion, are prima facie true and which if you are persuaded, requires terminating his services as RBI Governor immediately. These six allegations are as follows:
Rajan’s insistence on raising the interest rates leading to recession in the domestic small and medium industries and thereby causing not only a sharp decline in output but also a massive unemployment of semi-skilled labour. As a Professor of Finance he ought to have known this would be the inevitable consequence of rising and high interest rate and hence his policy was wilful and thus anti national in intent.
The RBI Act ruling out Sharia compliant financial institutions, and which bar was re-affirmed by the RBI and Finance Ministry in their respective affidavits filed in the Kerala High Court in response to my Writ Petition filed 2012, Dr. Rajan insisted on permitting Sharia complaint financial organisations to be set up but which you as Prime Minister had ordered stayed on December 1, 2014.
Rajan has continued to hold on to his US Green Card which is essentially a transitional visa arrangement for acquiring US citizenship, and requires performing US military duties if called for by the US Government. Despite holding a sensitive and very high Government of India post, he has continued annually to renew his Green Card by making the mandatory trip for at least one day residence in USA. The RBI Governor post is very high in the Warrant of Precedence and requires a patriotic and unconditional commitment to our nation.
As Governor of RBI, Dr. Rajan has sent confidential and sensitive financial information to various persons around the world on his University of Chicago unsecure personal email address: email@example.com . This is a reckless disregard of the national security interests of India.
Despite being a government official he has been publicly disparaging of the BJP government. For example he has by innuendos in effect held our government responsible for the “climate of intolerance” in the country. In a Washington Meet recently he disparaged the growth rate of India as being equal to a cockeyed person in the land of blind persons. Such pejorative sarcasm against the Government is a violation of the Rules governing public officials and conduct unbecoming of such an official.
Rajan is a member of the US dominated Group of 30 [www. group30.org]. From a close reading of the Group’s objectives it appears to be a group set up to defend US’s dominant position in the global economy. The way the booming Japanese economy crumbled in the 1997-98 East Asian Financial Crisis showed how the US Bond Market rates could trigger the crisis contagion across East Asia. This crisis led to US businesses to buy into most of the collapsed Japanese companies. The US grip on the Japanese economy today is profound, in stark contrast to the reverse during the 1980s. This seems now also the modus operandi of Dr. Rajan in his strangulating the small and medium industries by untenably high interest rates. My letter to you dated October 5, 2015 regarding RBI in-principle approval to 10 Applicants for Small Finance Banks is illustrative of such a sell out to foreigners in a critical area.
In view of the above, I wish to convey with all the emphasis I can muster, that it is in India’s national interest to terminate the tenure of Dr. Rajan as RBI Governor. The decision, of course, is yours to make. This letter is by way of a view for your possible consideration.
1. Text in Blue points to additional data on the topic.
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