Islamic banking firm opposed

Legal recourse: Janata Party president Subramanian Swamy coming out of the Kerala High Court in Kochi on Tuesday after presenting his case against the proposed Islamic banking company.

Janata Party president Subramanian Swamy on Tuesday criticised the LDF government’s decision to accord sanction for formation of an Islamic banking company by the Kerala State Industrial Development Corporation (KSIDC).

Talking to reporters here, he said that the proposed banking company had to follow Islamic law. The decision was “scandalous and dangerous” for the country.

He said it was regrettable that the CPI (M)-led government was promoting a particular religion.

If secularism was scrapped to favour a particular religion, it would set a dangerous trend. It would be like a separate electorate system introduced during the British rule, he said.

Against banking laws

He said that the decision also went against the provisions of the Banking Regulation Act 1949 because no interest could be charged under the Islamic law.

The decision also violated the guidelines of the Reserve Bank of India. He pointed out that a seven-judge bench of the Supreme Court had held that no money of the tax payers shall be used to promote an institution of a particular religion.

Link: http://www.hindu.com/2009/12/09/stories/2009120954180400.htm