Cong member questions shelving of SBI's Sharia Fund

Congress leader K Rahman Khan today alleged "politics" behind the decision to shelve State Bank of India's plan to launch Shariah Equity Fund in December last year, saying it happened after "an important functionary" wrote to Prime Minister Narendra Modi opposing it.
Participating in the debate over Budget in Rajya Sabha, Khan, former Minority Affairs Minister, claimed that he had the particular letter in his possesion but declined to name the functionary.
Khan wanted Finance Minister Arun Jaitley to respond why the scheme was stopped.
He said SBI had floated Sharia Equity Fund, an open-ended scheme designed to invest money in companies that follow Islamic Shariah rules. That was to commence from December one, last year, but was shelved all of a sudden on the same day with the SBI announcing its deferrment, Khan said.

"All of a sudden the SBI deferred the launch on December 1. Because a day earlier an important functionary wrote a letter to the Prime Minister that this should be stopped...And the Sharia Equity Fund was stopped. No reason was given whatsoever. I have the copy of the letter," Khan said waving a paper in his hand.
He said this happened even after the Reserve Bank of India was "convinced" about the feasibiliy of such a scheme, which could bring Rs 50,000 crore of deposits.
"Do not look at economic issues also from the coloured glasses?...Funds could come from Mauritius but not from other states," Khan said, who had been a strong votary of Islamic banking.

"What is wrong in having yet another scheme," he said wondering why a "well-thought out plan" was stopped.