Liberalization and History of Events of before Liberalization

Policy of liberalization and globalization of the past 20 years have raised many the economic questions. Who is responsible for such a situation? The public and political parties are in opposite direction of each other. As Prime Minister, Dr.. Manmohan Singh is responsible for this. Between 1976 and 1980 Reserve Bank, had seven Governors. When Morarajibhai Desai became Prime Minister, H.M.Patel became finance minister. At that time price of sugar in the market was Rs. 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. existed whose president was a Pakistani National. He had given representation to open Commercial Bank. Governor Dr.I.G. Patel had the information that B.C.C.I sends black money abroad. It is at that time Dr.I.G. Patel refused to allow B.C.C.I. to open Commercial Bank. On further enquiry about history of bank, it was found that before independence i.e. during the British rule, it was being run as a family firm. They moved into Pakistan after partition. Bank founder Agha Hasan Abidi in 1954 as got permission in name of United Bank of Pakistan from Pakistan Govt. Within 10 years, UBP was 2nd ranking bank in Pakistan. However Abidi wanted to take the bank out. Pakistan government got suspicious and Abidi was under house Arrest. So, devilish Abidi decided to create a new International Bank outside Pakistan. He caught hold of AbuDhabi (Sheikh Jaida BIn - Gulatan) and created 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 devil wanted to come to India. IN 1977, when Dr. I.G. Patel was the governor of the Reserve Bank, he had proposed to open a bank in India. At that time India was not allowing foreign Banks. Hence, he did not get permission. ON investigation about Bank, Dr. Patel found something suspicious about the Bank. To pressurize Dr.I.G.Patel, a proposal to make an International level Economic Organisation under Chairmanship of Famous Economist Dr. A.K.DasGupta (who was also Father-In-Law of Dr. I.G.Patel) was floated by an Bangladeshi national who was also 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 switch sides. Under CharanSingh’s Govt., when H.M.Patel was no more the Finance Minister, Finance Minister for State gave the B.C.C.I. permission in principle to open 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. has already got permission to open bank branches in U.K. and around 40 branches are operational over there. After retirement of Dr.I.G.Patel, executive of Mumbai Office 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 was informed that the meeting is cancelled, as the work for which Mr. Abidi was coming 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.

After retirement of Dr.I.G.Patel, Dr. Manmohan Singh became Governor of Reserve Bank of India in 1982. Suddenly B.C.C.I. got all the required permissions. On 10th November 1990, ChandraShekhar became 11th Prime Minister of the country. Dr. Manomohan Singh was made Economic Advisor. At that time there was a Balance of Payment Crisis. On advice of Dr. Manmohan Singh Indian Gold was mortgaged to Bank of England leading to tarnishing of image of India. After murder of Rajiv Gandhi in 1991, P.V.Narsimha Rao became the Prime Minister. To attain majority and break away 5 members of Jharkhand Mukti Morcha, what role B.C.C.I. paid is a subject matter of investigation. Manmohan Singh was paid his price by awarding him Finance Ministry. Dr. Manmohan Singh was sworn in as Finance Minister on 21st June 1991. All the above mentioned details were published in New York Times on 14th August 1991.

By Muzaffar Hussain

Sign up to vote on this title
UsefulNot useful