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SBI's Sharia-compliant mutual fund: Dr. Swamy writes to NaMo to stop the misadventures of SBI and RBI

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December 2, 2014.

Shri Narendra Modi,
Prime Minister,
South Block,
New Delhi.

Dear Narendrabhai:

            I am enclosing with this letter a write up  on the State Bank of India,  a public sector bank of the country which has decided to  open a mutual fund that will comply with  Islamic laws i.e., it will be a Sharia  compliant mutual fund.

  Earlier, the Government of Kerala had tried to introduce a Sharia compliant bank which I had challenged in the Kerala High Court by way of a Writ Petition, and succeeded in preventing it from being set up in India after the Reserve Bank under the then Governor  Dr. Y.V. Reddy had filed an affidavit  stating  that under Indian secular laws and under the Reserve Bank Act, Sharia compliant  is not permitted.

            Now by another door the same is being attempted regretfully because the present Governor of RBI who is an appointee of the UPA, and for some inexplicable reason he is continuing as Governor of the Reserve Bank of India, namely, Dr. Raghuram Rajan.  He is openly encouraging the formation of Sharia compliant financial institutions  which in my opinion will be politically and economically disastrous for our country.

            Hence I urge you to intervene in this matter and stop the SBI and the RBI  from engaging in such adventures.  I trust that you will ensure that the dubious funds in the Middle East do not enter our country through legally baptised channels of Sharia compliant financial institutions.

                                                                        Yours sincerely,


                                                               ( SUBRAMANIAN  SWAMY )

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