Hyperion to Satyr

Excerpt from Jairam Ramesh's book "To the Brink and Back: India’s 1991 Story"

It was Prime Minister Chandra Shekar and Finance Minister Yashwant Sinha - on the advice of RBI Governor S.Venkitaraman - who first decided to use our gold reserves to raise loans to keep the wheels of the economy moving. On May 16, 1991, 20 tonnes of confiscated gold was leased to the State Bank of India. Two days later SBI entered into a sale transaction with repurchase option with the United Bank of Switzerland. This was before the Rao government came to power. This helped raise $200 million.

Once the new government came to power, gold transfers continued...

Right from the start the parliament was agitated by the gold transfer issue. Members cutting across party lines protested loudly. Congress MPs did not spare their own government.

(there) were some fine moments of statesmanship, when the finance minister defended his predecessor, Yashwant Sinha who was being attacked by Congress MPs during question hour:

Dr.Manmohan Singh: Mr.Chairman Sir...the second question that was asked was, was this transaction absolutely necessary and what level this decision was taken?  I am convinced in both case (i.e. under the previous government and now) the transactions were very necessary. The former Finance Minister and Former Prime Minister took these decisions. It was not a happy decision. I know that the then Prime Minister was greatly pained by the decision and I share his sense of pain. It is not something I am very proud - to sell the country's gold - but the house must appreciate the situation in which the country stands....In the circumstances this was the best possible decision that could be taken