RBI Chief Should Work With Government Or Quit: RSS Economic Wing Head
NEW DELHI: The Reserve Bank of India governor should work in sync with the central government to support economic growth or he should resign, said the head of the economic wing of the Rashtriya Swayamsevak Sangh, which is the ideological mentor of Prime Minister Narendra Modi's ruling party, the BJP.
RBI Governor Urjit Patel should also "restrain his officials from making differences public," said the RSS official, Ashwani Mahajan, in an interview on Wednesday. "If he doesn't follow discipline it would be better for him to resign," he added.
Mr Mahajan is chief of the RSS's Swadeshi Jagran Manch (SJM) economic group.
Earlier in the day, some TV channels reported that Mr Patel could consider resigning from his post given a breakdown in relations with the government, sparking a sell-off in the rupee and bonds.
Tensions between the RBI and the government have become increasingly public after the bank's Deputy Governor Viral Acharya said last Friday night that undermining central bank independence could be "potentially catastrophic".
His comments indicated that the RBI was pushing back against government pressure to relax its policies and reduce its powers ahead of a general election due by May.
In a statement, the government said on Wednesday the RBI's independence was "an essential and accepted governance requirement" but it added that it would continue to extensively consult with the central bank to give its assessments on issues and suggest possible solutions.
Government officials on Wednesday declined to say whether it had for the first time ever used, or threatened to use, powers under the RBI Act that allow it to give the bank instructions. The Economic Times newspaper reported the government had sent letters to Mr Patel in recent weeks exercising those powers.
Mr Mahajan said that the government had every right to use the powers of the RBI act.
Foreign Influence Concerns
RSS's Manch is critical of the central bank's hawkish monetary stance, and has criticised the influence in recent years of foreign trained economists including former RBI governor Raghuram Rajan and former chief economic adviser at the finance ministry, Arvind Subramanian.
Mr Mahajan said the central bank and the government should work in tandem to achieve a higher economic growth rate along with lower inflation.
While opposing the appointment of any foreign trained economists at the central bank, he said there was no dearth of "talented persons" with nationalist vision on the RBI board, one of whom could replace Mr Patel if he resigned.
He said higher interest rates were hitting small businesses and there was a need to provide relief to save millions of jobs.
"RBI is adamant, ignoring India's ground realities," he said.
The Manch chief also said the RBI should agree to allow the government to take much of its surplus of cash reserves, estimated at nearly 3.6 trillion rupees ($48.67 billion), so that they could be invested, bolstering economic growth.
Earlier, a senior finance ministry official said that the government would like the central bank to pay the government a higher dividend considering the size of the reserves.
Courtesy: www.ndtv.com
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CM Siddaramaiah alleges ‘criminal conspiracy’ in Sringeri recount, vows legal action
Bengaluru (PTI): Alleging a “criminal conspiracy” by BJP candidate D N Jeevaraj in the Sringeri Assembly poll recounting, Karnataka CM Siddaramaiah on Tuesday said the outcome was manipulated after valid postal ballot votes in favour of Congress leader T D Raje Gowda were tampered with during the recounting process.
Following a Karnataka High Court order on an election petition filed by Jeevaraj, challenging Raje Gowda’s election, the reverification and recounting were conducted on Saturday.
After the reverification and recount of postal ballots for the Sringeri Assembly constituency, votes polled in favour of Raje Gowda were reduced by 255, the returning officer said.
A report on the matter has been submitted to the Election Commission of India for further action, the officer added.
Congress leader Raje Gowda had won the 2023 Assembly polls from Sringeri by 201 votes, defeating his nearest rival Jeevaraj.
Addressing a press conference in Bengaluru, Siddaramaiah said the High Court had directed the recounting of postal ballots and that irregularities were noticed during the exercise conducted on May 2.
“This is a clear case of criminal conspiracy,” Siddaramaiah said, alleging that valid votes cast in favour of Raje Gowda were altered after being accepted by counting agents of all parties, including Congress, BJP, and JD(S).
He claimed that during the recounting of postal ballots, 255 votes were initially accepted as valid by all agents but were later tampered with by subordinate officials.
“There is a second mark on the votes polled in favour of Raje Gowda. They had accepted these as valid votes. Subsequently, another mark was made by officials. This is a clear case of criminal conspiracy,” he said.
When asked who was behind the alleged conspiracy, the CM replied, “It was hatched by Jeevaraj and others. It is planned.”
Siddaramaiah further alleged that the returning officer acted improperly by declaring the result despite the presence of an Election Commission observer during the recounting.
“Immediately after the counting, the returning officer announced the result. He should not have done so; this is against the law,” he said.
He pointed out that Raje Gowda had originally won by 201 votes, but after the recounting, the BJP candidate was declared the winner by 52 votes.
“The BJP has committed a criminal act of conspiracy. This is not vote chori but vote dacoity,” he alleged.
The CM said a police complaint had already been filed by Raje Gowda’s election agent, Sudhir Kumar, and emphasised the need for electoral integrity.
“We want transparency and free and fair elections. That is what our Constitution mandates,” he added.
Stating that the government would pursue legal remedies, Siddaramaiah said, “We are preparing an appeal challenging the returning officer’s announcement in a court of law.”
Responding to a separate query on elections in other states, the CM said there appeared to be an anti-incumbency factor in West Bengal, while results in Tamil Nadu were “surprising,” adding that Vijay’s party was emerging as the largest there.
Following the victory of party candidates in Bagalkote and Davanagere South, Siddaramaiah expressed confidence about future electoral prospects in Karnataka.
“Even in 2028, we will win the Assembly elections. We will come back,” the CM said.
Siddaramaiah added that he would order a forensic examination into the alleged tampering of postal ballots.
