BJP continues attack on PC, brings Rajan on firing line

The BJP on Wednesday continued its attack on former finance minister Chidambaram on the gold import scheme, even as it dragged former RBI governor Raghuram Rajan into the firing line for green-signalling it days before the NDA government assumed power.

Senior BJP leader and Law Minister Ravi Shankar Prasad questioned the "supersonic speed" with which the file moved between nine desks in the Ministry of Finance after Chidambaram signed the file on May 15, 2014, giving seven private companies, including scam-tainted Mehul Choksi's Gitanjali Group, benefits of the 80:20 scheme by easing curbs.

Prasad, who on Monday questioned Chidambaram's push for including these seven companies on the eve of counting of votes for the Lok Sabha, said the scheme to ban gold export was rolled out in 2013 to tackle the negative current account deficit at that time.

"It is a textbook case of massive irregularity... We charge with the full sense of responsibility that under extraordinary pressure of vested interests, P Chidambaram took the decision a day before the election results," Prasad told reporters.

He said it was a serious policy decision and the RBI notified it on May 21, 2014. "Manmohan Singh had lost. Chidambaram was not finance minister. The model code of conduct was in place. The RBI says it consulted the government. I want to know which government they consulted," he said.

"What happened? Chidambaram could not wait. But the RBI is the banking regulator. Why can't it wait for a few days before the Narendra Modi government was to be sworn in on May 26? Why did it not wait? The then RBI administration should answer," Prasad said without taking the name of Raghuram Rajan, who did not get a second term as RBI governor during the Modi regime.

He said, "Chidambaram was aware of the democratic propriety of Indian polity, which meant you do not take a policy decision one day before the results of the elections. These trading houses were allowed to import gold up to 2,000 kg from any port of India. There was no control and verification. This is downright racket."