Rajan's exit from RBI a victory of 'crony capitalism' in India: Congress

Congress vice-president Rahul Gandhi also took a shot at the Centre saying that PM Modi did not need experts like Rajan since he already knew 'everything'

With Raghuram Rajan announcing his decision to leave his post as the Reserve Bank of India (RBI) Governor on the completion of his term this year, the Congress Party held the Centre responsible for creating such circumstances which forced a 'self respecting' person like Rajan to discontinue to his post.

"The fact that Raghuram Rajan, the RBI Governor, has said that he will go back to the academics, is a sad day not only for the RBI but for the financial sector of this country. This is the victory of crony capitalism in India," Congress leader Tom Vadakkan told ANI.

"It is unfortunate. We are seeing that such appointments are happening. Today we heard about Chetan Chauhan being appointed in NIFT. What is his background? He is a cricketer. We had the situation of Gajendra Chauhani n FTII, Pahlaj Nihalani in CBFC and then we had Subramanian Swamy abusing Raghuram Rajan. Was it at the behest of his master's voice or was it because of the tug of war with the finance ministry," he added.

The Congress leader also said that the country has lost a brilliant economist at the time when he was needed the most.

"You can't abuse a man perpetually and expect him to continue. No self respecting person would continue under such circumstances," he said.

Meanwhile, disappointed with the RBI Governor's announcement, Congress vice-president Rahul Gandhi also took a shot at the Centre saying that Prime Minister Narendra Modi did not need experts like Rajan since he already knew 'everything'.

"Prime Minister Narendra Modi knows everything. He has no need for experts like Raghuram Rajan," Rahul said in a series of tweets.

Asserting that it was people like him who made India great, Rahul thanked Rajan for steering the Indian economy in difficult times.

Earlier, former home minister P Chidamabaram asserted that this development was clearly India's loss and lashed out at the Centre for inviting this development.

"I am disappointed and profoundly saddened by the decision of Dr Raghuram Rajan to leave the RBI on completion of his term on September 4, 2016, but I hasten to add that I am not surprised at all," Chidambaram said in a statement.

Slamming the Bharatiya Janata Party (BJP)-led Centre for being responsible for this development, he added that it was the 'craftily planned campaign of insinuations, baseless allegations and puerile attacks on a distinguished academic and economist' which led to Rajan's announcement.

Rajan 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.