RBI chief warns on Appellate Raj |
Reserve Bank of India Governor Raghuram Rajan said India must strengthen its government and regulatory capabilities but must also resist bringing in layers and layers of checks and balances that hinder the state`s normal functions. Dr Rajan`s comments come as India`s emboldened regulators have begun investigating companies over a variety of alleged misdemeanors. Some investors have raised concerns about excessive zeal. The Central Bureau of Investigation sparked indignation after publicly announcing a probe into industrialist Kumar Mangalam Birla in December 2013 in relation to a coal block allocated to a firm belonging to his Aditya Birla Group. It dropped the case in August, citing lack of evidence. India cannot leave License Permit Raj only to end up in the Appellate Raj. This will not drive away corruption. Prime Minister Narendra Modi was overwhelmingly elected in May last year with a mandate of economic reform and speeding up decision-making, especially in areas such as infrastructure. Dr Rajan also said India needed more specialists within government with the domain knowledge and experience.
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