Beyond Rights and Wrongs

Raghuram Rajan, in his June 17 speech, had focused only on RBI, but `Why Rajan is Wrong' has used Sebi experiences and sanctity of “rule of law“ to conclude that he is wrong. The statement, “We reject Rajan's claim that the regulator must continue to have discretionary powers and should not be answerable,“ doesn't go well with Rajan's observation, “Am I arguing that no checks and balances are needed? Certainly not! But there are already checks and balances in place, including re view by con stitutional courts like high courts through writ petitions. Senior officers of the regulator are appointed, and can be removed, by the government. The FSLRC recommends an annual report to Parliament, as well as regular discussions with parliamentarians. These are good suggestions, which would add to oversight.“ The FSLRC report had dissenting notes from members K J Udeshi, P J Nayak and Y H Malegam. In effect, other than the chairman and the member-secretary , only two members had gone with the FSLRC report in its entirety . 
- M G WARRIER Mumbai

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