• Associate Sponsor

Panama Papers: Dangerous to question the legitimacy of wealth, says Raghuram Rajan

RBI Governor Raghuram Rajan today warned against a "dangerous" trend of questions being raised about legitimacy of even the 'entrepreneurial wealth of self-made people'.

By: ENS Economic Bureau | New Delhi | Updated: April 8, 2016 10:38 am
panama papers, panama leaks, panama paper expose, raghuram rajan, rbi RBI governor Raghuram Rajan. (Express Photo by Prashant Nadkar)

Reserve Bank of India Governor Raghuram Rajan on Thursday called for improving opportunities across the board to sustain the legitimacy of wealth in the wake of The Panama Papers.

Rajan warned against the “dangerous” trend of questions being raised over the legitimacy of wealth — and said that the focus of people who felt they did not have the opportunity, would be on those who had wealth, and the legitimacy of wealth.

Watch all Panama Related Videos here

“Now increasingly, there is a talk about whether entrepreneurial wealth is illegitimate, whether self-made people should have what they have, and whether that’s something a fair game,” Rajan said.

“I think this is dangerous. And the fact that there are occasions when people are found to be hiding their wealth as in the Panama allegations, essentially contributes to this process of de-legitimisation,” the RBI Governor said.

The RBI is part of the multi-agency group announced by the government to probe cases of all Indians who have set up offshore entities in tax havens who feature in The Panama Papers.

Watch Video

“Improving opportunities across the board will sustain the legitimacy of wealth,” Rajan said at a conference organised by the CII in partnership with the Institute of South Asian Studies (ISAS) and National University of Singapore (NUS). “If most people don’t have opportunities, then their focus will be on people who have more.”

On Tuesday, Rajan had said that it was important to note that there were legitimate reasons to have accounts outside the country. “The LRS (Liberalised Remittance Scheme) allows you to take money outside. Yet to see what is legitimate and what is not legitimate. That’s the process of investigation that will take place,” he said.

With PTI inputs

For all the latest India News, download Indian Express App

  1. A
    Anand Drivedi
    Apr 7, 2016 at 2:43 pm
    This statement clearly proves that the government is already planning to protect the guilty. The common man today has no voice in India under the gutter BJP rule.
    1. I
      Apr 7, 2016 at 1:47 pm
      It's clear nothing will happen.
      1. T
        Apr 9, 2016 at 6:13 am
        Two persons were not replaced after change of government. 1.Lt.Governer of Delhi. And 2. Mr.RAghuram Rajan.This statement of his shows many of the list will be protected.
        1. P
          Apr 8, 2016 at 11:00 am
          Very sensible and calm.lt;br/gt;He should be the finance minister.
          1. Pranjal Rawat
            Apr 7, 2016 at 2:51 pm
            The lone man who speaks sense and is honest about the nature of wealth creation. The rest swadeshi-socialists of all shades, will indugle in the most currupt of money making, but to their vote banks will profess a populism that may shame Jesus of Nazareth. Punji-vaad need not be all bad, especially when Punji is put to efficient, worthwhile ends.
            1. Load More Comments