Centre destroying institutions like RBI: AAP

The Aam Aadmi Party (AAP) Thursday alleged that the Modi government was "destroying" various institutions, amid reports that Reserve Bank was being forced to resolve differences with the Centre which has cited powers that were never used before.

AAP spokesperson Sanjay Singh also claimed the Centre has "invoked" a rare provision under section 7 of the RBI Act to "pressurise" the apex bank in its bid to benefit some businessmen, who he said are close to Modi government.

"The government is destroying various institutions. Invoking section 7 of RBI Act would end the 83-year-old autonomy of the RBI. Through this step, the Centre will direct the RBI to release funds to the banks so that they could compensate the deficit created due to huge loans given to big businessmen who are close to Modi government. This will push the country towards recession and bankruptcy," Singh alleged.

 

Questions are being raised over autonomy of the RBI, with the RBI Deputy Governor Viral Acharya last week warning that undermining central bank's independence could be "potentially catastrophic".

However, the government Wednesday said the RBI's autonomy is "essential" and will be "nurtured".

The government is believed to have sent at least three letters on different issues under Section 7 of the RBI Act that gives it powers to issue any direction to the central bank governor on matters of public interest.

Singh said, "Those who take small loans of Rs 2-5lakh from banks have to mortgage their entire assets. But as the government fails to recover big loans from industrialists, such bad loans are recovered from people. The NPA of big industrialists has gone up to Rs 10.25 lakh crores and section 7 has been involved to compensate this".

Singh also alleged that the Rafale fighter jet deal is a "Rs 36,000-crore scam".

"Government has not been disclosing the price of Rafale fighter jet because they have purchased a plane costing Rs 526 crore at an inflated price of Rs 1670 crore," he alleged.

He said there is a secret understanding between the Congress and the BJP in poll-bound Madhya Pradesh, "as Prime Minister Narendra Modi never goes to campaign in the Lok Sabha constituency (Chhindwara) of state Congress president Kamal Nath".