Sent list of high-profile fraud cases to PMO, don't know where do they stand now, says Raghuram Rajan

Former Governor of the Reserve Bank of India Raghuram Rajan said that he had raised an alarm to the PMO over high-profile fraud cases. In an interview to NDTV, Rajan said that he had sent a list of fraud cases to the office of Prime Minister but he was unaware of where those cases stood. 

"I'm unaware of where those cases stand. It had a list of the largest frauds. The reason I'm worried is if one gets away with immunity then others may follow," said Raghuram Rajan. 

Besides, he also spoke about on a number of issues concerning Indian Economy and listed out various suggestions also. 

On RBI sharing its surplus with Modi goverment, Rajan said, "There is always a pressure on the central bank to pay the government more. When I was governor, we paid the highest dividend to the government. But that isn't the issue any more. The government doesn't just want the profit, it wants the excess." 

However, to end the tussle between the two, Rajan added, "Given the controversies, it makes sense to have an external board to look at what's been done.  I'm not a GDP expert but my sense is that



we've gone backwards and forwards. Ultimately we have to have confidence. For the outside investor. And for policy decision". 

Rajan also shared his views about the ongoing IL&FS crisis. He said, "There were early warning signs of the financial crisis in IL&FS which should have been heeded."

"We've now discovered the extent of the problem largely... My sense was that we are now where we thought they might be... The reality is if you don't recognise it you're not forced to act," he said.

However, he further added, "I dont think IL&FS is India's Lehman moment."

Rajan also addressed India's NPA problem. He said, "We need to keep cleaning up the bad loans. Besides, bankers should be ready to make concessions."

He expressed his views over GDP back series too. Rajan said that revisions take place all the time, it isn't any problem as such. 

But it needs to be explained what exactly changed and put out all the numbers.

"Reality is- GDP is a sausage put together with assumptions, extrapolations, it's complicated," he