80:20 gold import scheme: The fire behind the smoke in UPA's policy

The scheme, touted as a panacea to burgeoning CAD, was a huge flop that fostered a spike in smuggling and allowed several Gitanjali-like players to make a killing

When, on 13 May 2013, jewellers were busy selling hundreds of tonnes of gold imported during the past month-and-a-half on Akshya Tritiya day, the country’s central bank issued a circular in the afternoon spoiling the party and marking beginning of restrictions. The Reserve Bank of India (RBI) asked banks not to import gold on consignment basis, setting the stage for the most controversial and draconian step for bullion trade since the imposition of the Gold Control Act.

Politicians who now blame the UPA government for a policy decision made during P Chidambaram's tenure as finance minister are actually barely scratching