Swamy fires fresh salvo; asks PM to sack Rajan immediately

Following up on his barbs against Rajan, Swamy has again written to Prime Minister Narendra Modi that the former IMF Chief Economist should have known the "inevitable consequence of rising and high interest rate and his policy was wilful and thus anti-national in intent".

He alleged that Rajan raised interest rates to force recession on domestic industries, permitted Sharia compliance on financial organisations despite RBI Act not permitting so, continued to hold on to his US Green Card and sent confidential and sensitive financial information around the world.

The BJP leader also accused Rajan of publicly disparaging the Modi government and alleged that he is a member of "a US dominated group" that was set up to defend America's dominant position in the global economy.

Swamy, who had earlier called Rajan "not appropriate for the country" and then written to Modi seeking his sacking, in a letter to Modi today said the six allegations levelled by him against the RBI Governor were "prima facie true" and require termination of Rajan's services "immediately" in the "national interest".

No immediate comments were available from RBI Governor. Rajan, Swamy claimed, has been sending confidential and sensitive financial information using unsecured Chicago University email id and publicly disparaging the BJP government.

In his second letter to Modi within a fortnight, Swamy alleged that despite holding a sensitive and very high government post, Rajan has been making mandatory trips to the US to renew his Green Card.

RBI Governor's post, Swamy added, "is very high in the Warrant of Precedence and requires a patriotic and unconditional commitment to our nation".

Rajan, he further alleged, is a member of US dominated Group of 30 which is engaged in defending America's dominant position in the global economy.

Yesterday, BJP President Amit Shah was asked whether Swamy's demand for ouster of Rajan reflected the party's view, to which he replied, "What I say is the party's line".

Swamy said Rajan's insistence on high interest rate led to recession in the domestic small and medium industries causing not only sharp decline in output but also massive unemployment of semi-skilled labour.

Recalling how the crisis in Japan and East Asia led to strong dominance of the US in the region, Swamy said: "This seems now also the modus operandi of Dr Rajan in his strangulating the small and medium industries by untenable high interest rates."

Accusing Rajan of sending "confidential and sensitive" financial information to various persons around the world on his Chicago University unsecured personal email address, Swamy said: "This is a reckless disregard of the national security interest of India."

He said that despite being a government official, Rajan has been publicly disparaging the BJP Government.

"He (Rajan) has by innuendos in effect held our government responsible for climate of intolerance in the country," Swamy said, adding that the Governor in Washington had disparaged the growth rate of India as being equal to a "cockeyed" person in the land of blind.

"Such pejorative sarcasm against the government is a violation of the rules governing public officials and conduct unbecoming of such an official," Swamy said.

Even after becoming RBI Governor in September 2013, Rajan has continued to hold US Green Card which is essentially a transitional visa arrangement for acquiring US citizenship and also requires performing US military duties if called for by the US government, Swamy said.

"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 the USA," he said.

He further said that Rajan insisted on permitting Sharia compliant financial institutions although there is no such provision in the RBI Act.

Swamy in his letter on May 17 to the Prime Minister had urged him to sack Rajan immediately claiming he was "mentally not fully Indian" and alleged that he has "wilfully" wrecked the economy.