Liberalization and History of Events of before Liberalization
Policy of liberalization and globalization of the past 20 years have raised manythe economic questions. Who is responsible for such a situation? The public andpolitical parties are in opposite direction of each other. As Prime Minister,Dr.. Manmohan Singh is responsible for this. Between 1976 and 1980 ReserveBank, had seven Governors. When Morarajibhai Desai became Prime Minister,H.M.Patel became finance minister. At that time price of sugar in the market wasRs. 2.50 per Kg. On 1 December, 1977 DR. I G Patel was made as Governor of the Reserve Bank of India. At that time a foreign bank B.C.C.I. existedwhose president was a Pakistani National. He had given representation to openCommercial Bank. Governor Dr.I.G. Patel had the information that B.C.C.I sendsblack money abroad. It is at that time Dr.I.G. Patel refused to allow B.C.C.I. toopen Commercial Bank. On further enquiry about history of bank, it was foundthat before independence i.e. during the British rule, it was being run as a familyfirm. They moved into Pakistan after partition. Bank founder Agha Hasan Abidi in1954 as got permission in name of United Bank of Pakistan from Pakistan Govt.Within 10 years, UBP was 2
ranking bank in Pakistan. However Abidi wanted totake the bank out. Pakistan government got suspicious and Abidi was under house Arrest. So, devilish Abidi decided to create a new International Bankoutside Pakistan. He caught hold of AbuDhabi (Sheikh Jaida BIn - Gulatan) andcreated to capture B.C.C.I. (Bank of Credit & Commerce International) under him. In 1977, B.C.C.I. was world’s most rapidly growing Bank. Now the devilwanted to come to India. IN 1977, when Dr. I.G. Patel was the governor of theReserve Bank, he had proposed to open a bank in India. At that time India wasnot allowing foreign Banks. Hence, he did not get permission. ON investigationabout Bank, Dr. Patel found something suspicious about the Bank. To pressurizeDr.I.G.Patel, a proposal to make an International level Economic Organisationunder Chairmanship of Famous Economist Dr. A.K.DasGupta (who was alsoFather-In-Law of Dr. I.G.Patel) was floated by an Bangladeshi national who wasalso an employee of B.C.C.I. But Dr. I.G.Patel rejected even that proposal. So,now Mr.Abidi, by awarding B.K.Nehru and Sunny Ramfal , made them switchsides. Under CharanSingh’s Govt., when H.M.Patel was no more the FinanceMinister, Finance Minister for State gave the B.C.C.I. permission in principle toopen the Bank. This info was passed on to Dr.I.G.Patel by Manmohan Singh,who was working in Finance Ministry. He informed Dr.I.G.Patel, that B.C.C.I. hasalready got permission to open bank branches in U.K. and around 40 branchesare operational over there. After retirement of Dr.I.G.Patel, executive of MumbaiOffice of B.C.C.I. met Mr.Patel and requested him to meet Chairman Mr. Abidi.The Appointment was also fixed. But just one day before meeting, Dr. Patel wasinformed that the meeting is cancelled, as the work for which Mr. Abidi wascoming to Mumbai from Delhi has been completed in Delhi itself. Incidentally, Dr.Patel had advised Mrs Indira Gandhi not to give too much importance to Dr.Abidi.