P Chidambaram, country’s first finance minister to go to jail on charges of corruption, has started lecturing the government on the state of the economy. Out on bail, Chidambaram has targetted the Modi government saying that the government is clueless about the economy and that India will be lucky to end the year if growth touches 5%. Chidambaram certainly comes across as a disgrace to the sanctity to the post of finance minister.
There could not be anything worse than a country’s finance minister to be involved in a finance related crime. But, Chidambaram is involved in many other illegalities including changing the affidavit in the Ishrat Jahan encounter, creating the myth of saffron terror, Aircel Maxis scam, and 2G scam.
Chidambaram has allegedly violated the condition of the bail- to not make any public statement, on the very first day after he got out of the jail, after more than three months.
Chidambaram held the Minister of Finance portfolio for four times (31 July 2012 – 26 May 2014, 22 May 2004 – 30 November 2008, 1 May 1997 – 19 March 1998, 1 June 1996 – 21 April 1997), with a total duration of almost 10 years. His duration as finance minister was symbolized by the rampant corruption, and back breaking inflation.
In the last term of Chidambaram as finance minister, inflation was very high, ranged between 6 to 14 percent, and crossed the double digit figure. On the other hand, during Modi government’s tenure, inflation never crossed the 6 percent ceiling mandated under the mandate to Monetary Policy. In a few months, inflation dipped below lower bound of 2 percent but never crossed the upper bound. In fact, there has been a plethora of criticism of RBI, which has kept the repo rate high despite the low inflation.
Food Inflation, which became a major election issue in 2014 general election, and, one of the primary reasons behind Congress reduced to 44 seats, ranged from 10 to 15 percent in the last two years of Chidambaram as finance minister. He even justified the high inflation, by arguing that high inflation is sign that there is demand in economy.
Even in 1996 to 1998, when Chidambaram got the coveted chair for the first time, inflation shoot up. Therefore, much of Chidambaram’s tenure as finance minister was marred with high inflation and corruption.
Inflation, especially food inflation, is considered tax on poor. Chidambaram, who always have been anti-poor and elitist, was happy with the tax on poor. The second thing which hurt the national economy most was the corruption cases during 10 years of UPA government.
Chidambaram himself was involved many corruption cases including Aircel Maxis, for which he was jailed. P Chidambaram who was the then finance minister met with Indrani and agreed to give ‘retrospective approval’ of downstream investment of more than 300 crore rupees in exchange of 5 crore rupees ‘investment’ in his son’s firm. That’s what sealed P Chidambaram’s fate.
The case was unearthed by ED’s Investigating Officer Rajeshwar Singh when he conducted raids at Chidambaram’s home and his son’s firm in connection with Aircel-Maxis probe in December 2014. It has been found that the Chidambaram family has illegal assets in 14 countries. ED has already attached the family’s properties worth 54 crore rupees in Delhi, Ooty, Chennai, London, and Spain in INX Media case.