Jaitley wanted Rajan to continue, but 'Sangh' lobbied against it: JD (U)

Asserting that political interference in institutions such as the RBI was against the interest of the nation, the Janata Dal (United) on Monday said Finance Minister Arun Jaitley wanted RBI Governor Raghuram Rajan to continue for the second term, but the Rashtriya Swayamsevak Sangh (RSS) lobby was against it.

JD (U) leader KC Tyagi further pulled-up the government for not allowing the RBI Governor to work with freedom and said, "He (Raghuram Rajan) is a world famous economist, such people should be allowed to function freely, which this government does not allow."

"As a Finance Minister, Arun Jaitley wanted second term for Rajan, but Sangh lobby was against it," he added.

He criticised the BJP leaders for creating circumstances that forced Rajan to decide not to continue.

"Some BJP leaders created such circumstances that to continue with the post became against his principles," he told ANI.

On Saturday, former union minister Veerappa Moily had hinted at RSS being involved in the entire matter.

Moily criticised the saffron outfit for having embarrassed Rajan and said the latter was needed to steer the economy in times of global economic uncertainty.

Rajan on Saturday announced that he would return to the academic world at the end of his term on September 4, 2016, adding he will always be available to serve his country when needed and asserted that his 'successor' would take the nation to new heights.

Rajan is currently on leave from the Chicago Booth School of Business where he holds the post of Distinguished Service Professor of Finance.

Swamy, who has been one of the chief critics of Rajan, on Saturday welcomed the latter's decision and said that he was not even getting a second term in the first place.