Muslim MPs called on Finance Minister P Chidambaram and submitted a memorandum to Prime Minister Manmohan Singh in the capital on 18 December to raise the issue of Interest-free banking, Waqf encroachment and granting of Scheduled Caste status to Christians and Muslims of Scheduled Caste origin. The Finance Minister assured the delegation that the process to find out the possibility of Islamic banking has already started and RBI is looking into it from all angles.
In the memorandum, the Parliamentarians asked the Government to bring financial instruments recommended by the High Level Committee on Financial Sector Reforms, Planning Commission of India, in 2008 headed by Raghuram Rajan, the present RBI Governor, to meet the challenges of economy through interest-free banking. The MPs have also demanded from the Finance Minister to arrange consultation with the concerned authorities including the RBI Governor for sorting out legal and technical apprehensions in order to implement the recommendations on the subject.
Abdur Rahman, MP Vellore, who led the delegation of MPs along with Abdur Raqueeb, General Secretary of Indian Centre of Islamic Finance, told Radiance after meeting with the Finance Minister and submitting the memorandum to Prime minister, that during the meet the Finance Minister said as far as Islamic Banking is concerned he has already sent a note to the RBI authorities to look into the possibilities, merits and demerits in the banking sector. “So the process is very much in action. In policy he is convinced and the Prime Minister is also convinced. The government is in favour but the RBI rules have to be changed as per the norms of the Islamic banking. It is a wider issue and it may take some time but he has assured that he will do everything from his side to make it possible at the earliest.”
In another memorandum to Prime Minister the issue of encroachment of Wakf properties by State and Central governments has been raised with the demands to release all such properties to the concerned authorities. MPs have asked the Prime Minister to resolve the matter and safeguard the legitimate interest of the minority community.
A day before submitting the memorandums, Muslim Parliamentarians cutting across party affiliations met at the residence of Ali Anwar, JD-U MP on Feroz Shah Road on 17 December to discuss issues and policies pertaining to minorities. Of them, many tried to raise the issue in Parliament but could not do so because of frequent adjournments and disruptions. Soon after the meet was over, a press conference was held to brief issues that were discussed and talked upon. Ali Anwar, MP, while talking to reporters demanded the extension of Scheduled Caste Status to Christians and Muslims of Scheduled Caste origin. He also said that de-linking religion with Scheduled Caste Status with Religion was the recommendation by Justice Ranganath Misra Commission. He demanded from the Prime Minister to assure the aggrieved people and from the MPs to assure the reply from the GOI to the Apex Court. All parties except BJP have endorsed this, and this issue has been raised many times but nothing has happened so far.
The other issue that was talked upon was interest-free banking/alternate banking which has been pending for a long time and requires immediate attention. Present Governor of RBI recommended this when he was heading the Financial Reforms Committee in 2008. To meet the economic demands of the country and to facilitate financial inclusion for inclusive growth this instrument needs to be adopted by the Government. During the press briefing Abdur Raqueeb, General Secretary of Indian Centre of Islamic Finance said it is high time to go for interest-free banking because at least 75 countries in the world have adopted Interest-free Islamic banking and it is growing rapidly. It is in the interest of Indian economy to have interest-free banking because it is risk sharing and is profitable for weaker, marginalised people and petty farmers. He said it is not at all mandatory to have name like Islamic banking; it can have any name but it should comply with the norms of the Islamic Banking.
He also said that the chief architect of the green revolution, MS Swaminathan had earlier said that to the farmers in Vidarbha committing suicides it is only interest-free banking that can be of great help. To them the only answer is Islamic Banking. Raqueeb also asked the RBI Governor to implement what he had earlier recommended for interest-free banking. Islamic banking to a greater extent will meet our economic requirements and will bridge the gap between rich and poor and it will attract FDI which will help boost the infrastructure. If 75 countries can adopt interest-free banking, why not India?
The Issue of Wakf properties encroachment by the Government and release of such properties to the concerned institutions was also raised. It was also felt that with reference to the letter of late PM Indira Gandhi on March 26, 1976, no action has been taken either by the Central Government or by State Governments. The 9th Joint Parliamentary Committee headed by the present Minority Affairs Minister has been put on hold. A fresh case worth 1600+ acr land case of Manikond Wakf –AP, is in Supreme Court though the AP Tribunal, High Court and the Revenue records were in favour of the institution, the State Government filed the SLP in the Apex Court with all its might through Attorney General of India. MPs have demanded to release all Wakf lands encroached by the Governments and settle the pending litigations according to Revenue Records and Wakf survey with compensatory land of equal infrastructure value.
Abdur Raqueeb, speaking to Radiance, expressed hope from the meet with the Finance Minister and from the assurance given by P. Chidambaram on the issue of interest-free banking. Raqueeb also thanked all Parliamentarians for their support and their goodwill gesture. The memorandum was signed by Parliamentarians like Ali Anwar, Mohammad Adeeb, Abdur Rahman, Shafiqur Rahamn Burq, Sabir Ali, A.S Malihabadi, Hussain Dalawi and Shariq Sharifuddin.