Swami Opposes Islamic Banking In J&K


Shoots Letter To PM, Seeks His Intervention To Block The Move

Srinagar: Senior Bharatiya Janata Party (BJP) leader Subramanian Swamy has opposed introduction of Islamic Banking in Jammu and Kashmir, claiming such a move would not only be against the laws of India but it would also be financially a “disaster” for the country.

In a letter shot to the Prime Minister, Narendra Modi in the backdrop of a Public Interest Litigation (PIL) seeking the introduction of Islamic Banking in Jammu and Kashmir, the controversial BJP leader has reminded the PM that a similar attempt by State Bank of India to set up a Sharia Mutual Fund was also blocked following his letter in 2014.

“To allow Islamic Banking would not only be against the laws of the country but it would also be financially a disaster for a country,” reads the letter issued on November 8.

The Rajya Sabha MP’s letter further informs the PM that the Jammu & Kashmir High Court was considering a PIL on allowing Islamic Banking in the State.

“The Reserve Bank of India has filed a counter affidavit in the case. But so far, The State Government (under President Rule) has failed to file its Affidavit. Time has been given again,” Swamy writes in the letter.

While giving the reference to the Kerala case, the BJP leader writes that, the then Reserve Bank Governor, Dr. Y. V. Reddy, and the Ministry of Finance in 2010 has filed affidavits opposing Sharia compliant Banks .

“Therefore, the J&K High Court may be apprised of the correct position of the Union of India, by way of a proper affidavit,” he adds.

It may be noted that the High Court of J&K and Ladakh on November 3, granted four more weeks time to the government to respond to a Public Interest Litigation (PIL) seeking the introduction of Islamic Banking in Jammu and Kashmir.

Reserve Bank of India (RBI) and J&K Bank have already responded to the PIL.

Jammu and Kashmir People’s Forum, a non-government organization, filed the PIL in 2018.

The Forum also seeks direction to the J&K Bank to take immediate steps for the opening of Sharia-compliant windows to accomplish the objective of mass level participation in Sharia Banking.

It also seeks direction to J&K Bank Limited to place before the court the entire details of NPAs and the steps taken for the recovery of the outstanding amount in NPAs, saying the same is public money which cannot be allowed to be misappropriated either by the account holders or by the management of the bank.

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Auqib Javeed

Auqib Javeed is special correspondent with Kashmir Observer and tweets @AuqibJaveed

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