Govt blames UPA II FM Chidambaram for relaxing 80:20 gold import scheme

Says 13 entities made windfall gain of Rs 45 billion from the decision taken three days before result of 2014 general elections

The central government blamed ex-Union finance minister P Chidambaram for deciding to relax the 80:20 gold import scheme three days before the 2014 general election, saying 13 export houses were benefited to the extent of Rs 45 billion.

The government did not name Chidambaram directly but said "then finance minister". Nor did it name the 13 entities.

Sources in the bullion market said three of these were known jewellery houses. One importer defaulted and left India in 2013 but a company controlled by him was given permission to import gold as a trading house under this relaxation.

The 80:20 scheme was diluted on