India needs Islamic Banking for Inclusive Growth and Infrastructure Development

by H. ABDUR RAQEEB

 

---------- Forwarded message ----------

From: Abdur Raqeeb <abdraqeeb@gmail.com>
Date: Wed, May 2, 2012 at 6:00 PM
Subject: Article:"India Needs Islamic Banking for Inclusive growth and infrastructure Development" in Mainstream weekly
To:

Dear Sir,

Assalamu Alaikum

Greetings from Indian Centre for Islamic Finance(ICIF) , New Delhi

We are pleased to send you an article "India Needs Islamic Banking for Inclusive growth and infrastructure Development" by H Abdur Raqeeb, General Secretary , ICIF  published in Mainstream weekly. The article was written in reply to Dr Ather Farouqui's article which was earlier published in the same weekly.

Please click on the link below to access full article by H Abdur Raqeeb:

http://www.mainstreamweekly.net/article3408.html

Please pass this article to your colleagues and to your near and dear ones. We kindly request you provide your valuable feedback. Letters to editor of The Mainstream weekly can be sent to this address mainlineweekly@yahoo.com 

Ali Jasim

OE-ICIF

--
Indian Centre for Islamic Finance
D-309, Abul Fazl Enclave,
Jamia Nagar, Okhla,
New Delhi -110025
Contact No: 011-29945946
Email: icif.trust@gmail.com/info@icif.in
Website: www.icif.in

--------------------

H ABDUR RAQEEB
Convenor, National Commitee on Islamic Banking

General Secretary, Indian Centre for Islamic Finance (ICIF)

D-309, Abul Fazl Enclave, Jamia Nagar,New Delhi-110025

 

Mob: +91 9444075501

Email: abdraqeeb@gmail.com

Website: www.icif.

-------------------


http://www.mainstreamweekly.net/article3408.html

Mainstream, VOL L, No 19, April 28, 2012

India needs Islamic Banking for Inclusive Growth and Infrastructure Development

by H. ABDUR RAQEEB

The following is a response to Dr Ather Farouqui’s article “Islamic Banking in India at the Service of Pan-Islamists” in Mainstream (Vol L, No 11, March 3, 2012). “Islamic Banking in India at the Service of Pan-Islamists”, an article by Dr Ather Farouqui, is timely. It has evoked interest in the community as well as the country as a whole and a serious debate on the gaps and gains of Islamic finance and banking has started. Thus it has indeed turned to be a great blessing in disguise.

The learned author has raised three pertinent questions for which convincing and correct answers have to be provided to put them in the proper perspective. The first question is whether Islamic finance and banking is “central to the enterprise of those within the community who wish to wield power in the name of Islam and alienate Muslims from the rest of the world” or the discussion is to be related on the need and relevance of Islamic finance and banking in the post-economic melt-down era of the world in general and our great country in particular.

The second question is whether unscrupulous operators in the name of Islamic banking are being found in almost every locality where a substantive Muslim population exists in the country. Shylocks of the community run scandalous banking adopting dubious methods extracting the money of the poor of the community and depositing their savings in the conventional banks and gaining interest as claimed by the author.

The third point that Dr Farouqui has raised is about the various Islamic products offered by Islamic banks and whether they are better than the conventional products offered by banks and how far they are in concurrence with the teachings of Shariah.

Let us now turn to the first question.

Soon after the financial tsunami in the West, Mr Klaus Schwabb, Executive Chairman of the World Economic Forum, declared in 2009: “Today we have reached a tipping point, which leaves us only one choice—change or face continued decline and misery.”1
The change envisaged by Mr Klaus is the introduction of an alternative finance and banking system based on equity, justice and fair play instead of debt financing and toxic products used in sub-prime mortgage.

Gordon Brown, the former Prime Minister of Britain, was specific when he said at the G20 meet: “It is time for a value-based market which is premised on a shared global ethics. A market with morals is possible based on demanding responsibility from all and fairness to all.”2

The Vatican offered the Islamic finance principles to Western banks as a solution for the world-wide economic crisis. “The ethical principles on which Islamic finance is based may bring banks closer to their clients and to the true spirit which should mark every financial service.”3

Mr Vaidiyanathan, a Professor of Finance, Indian Institute of Management, Bangalore, commented: “The country should call for an alternative global financial architecture, which is built on the real economy and not on the paper economy.”4 For the real development of India we have to focus on two aspects:

1. Inclusive growth of the entire population.
2. Infrastructure development.

Even after forty years of nationalisation of the banks, 60 per cent of the people do not have access to formal banking services and only 5.2 per cent of the villages have bank branches. Marginal farmers, petty traders, landless labours, self- employed and unorganised sector enterprise, ethnic minority and women—the Aam Aadmi of the country—continue to form “the financially excluded class”. India is prospering, but Indians are not. Twenty richest Indians earn as much as what 30 crore poorest people are earning, writes Bimal Jalan, the former RBI Governor. While the GDP growth is nearly nine per cent, the Aam Aadmi—representing 860 million marginalised Indians—earns only Rs 20 per day. The system has created two sections in our society: the super rich and the super poor. In this scenario when farmers committed suicides, the father of the Green Revolution, Dr M.S. Swaminathan, suggested that Islamic banking may be a solution to the farmers’ suicide crisis in Vidharbha. Speaking at the Karuna award function at Chennai he said: “Islamic banking may be the solution to the farmers’ suicide crisis in Vidarbha”. “Even yesterday we heard news about 30 farmers who committed suicide in Vidarbha. Islamic banking, which propagates zero interest lending, could hold the key to solving this crisis,” 5 he said.

Successful stories of the Grameen Bank system by Prof Mohammed Younus in Bangladesh provided a great boost to microfinance the world over and in India several institutions came up to help petty traders, landless labourers and women, following his example.

What is the condition of these microfinance institutions in India? The pathetic situation of the topmost microfinance institution—SKS Finance—has been researched and recorded in a recent article of The Hindu titled Small loans add up to lethal debts 6 : ”More than 200 poor, debt-ridden residents of Andhra Pradesh killed themselves in late 2010, according to media reports compiled by the State Government. Incidents like a woman drank pesticide and died a day after a loan agent told her to prostitute her daughters to pay off her debt. One agent blocked a woman from bringing her young son, weak with diarrhea, to the hospital, demanding payment first.”

Now the RBI has come out with strict guide-lines enforcing the Malegam Committee’s recommendations. The Andhra Pradesh Government has announced the introduction of interest-free loans for women in self-help groups, with an outlay of Rs 1400 crores from the next financial year.7

In 2005, the Planning Commission constituted a high-level committee called the Committee on Financial Sector Reforms (CFSR) under Dr Raghuram Rajan, a former Chief Economist of the IMF, which recommended interest-free finance to be introduced in the main banking sector with the objective of inclusion and growth through innovation.
“Another area that falls broadly in the ambit of financial infrastructure for inclusion is the provision of interest-free banking. Certain faiths prohibit the use of financial instruments that pay interest. The non-availability of interest-free banking products (where the return to the investor is tied to the bearing of risk, in accordance with the principles of that faith) results in some Indians, including those in the economically disadvantaged strata of society, not being able to access banking products and services due to reasons of faith.

This non-availability also denies India access to substantial sources of savings from other countries in the region. “While interest-free banking is provided in a limited manner through NBFCs and cooperatives, the Committee recommends that measures be taken to permit the delivery of interest-free finance on a larger scale, including through the banking system. This is in consonance with the objectives of inclusion and growth through innovation. The Committee believes that it would be possible, through appropriate measures, to create a framework for such products without any adverse systemic risk impact.”8

(Chapter 3: Broadening Access to Finance, page 35)

Infrastructure Development of India

INFRASTRUCTURE development is at the crossroads. “The country’s Twelfth Five-Year Plan for the period 2012-2017 targets on removing some of these roadblocks and creating a framework for private-sector participation, but it depends on the ability of India’s leaders to execute these plans, according to Standard and Poor’s”.9 In its draft for the Twelfth Five-Year Plan for 2012-2017, the government proposes to invest US $ 1 trillion to upgrade infrastructure—almost double that in the earlier Plan, which ended in March 2012.

Standard and Poor’s released another important document on October 13, 2011 entitled ‘Will Islamic Finance play a key role in funding Asia’s huge Infrastructure task?’10 which specifically mentions:

“Financing multi-billion-dollar infrastructure projects is rarely easy. But the current jittery state of the world’s lending markets is making the task of funding infra-structure developments – from power stations to railways – even harder. This issue is particularly pertinent for Asia, which is struggling to keep up with the escalating infrastructure needs of the region’s surging population amid solid economic growth. With the outlook for global lending markets still uncertain, part of the solutions for Asia may lie in finding alternatives to conventional financing. Islamic finance is one such alternative.

“Standard and Poor’s Ratings Services believes that the growing and deepening market for Islamic financing is a key reason why we think this market is worth considering for the infrastructure sector. We also believe that infrastructure projects are a logical fit for Islamic finance, which is governed by Sharia and predicated on asset-backing and shared business risk. Indeed, we believe that the asset-backing nature of Islamic financing may provide a better funding match for infrastructure projects than traditional lenders, such as banks. What’s more, sukuk investors typically have an appetite for longer tenors than bank loans, and prefer stable and predictable cash flow—traits that are typically associated with infrastructure projects.”

The prestigious international journal The Economist has brought out an Economist Intelligence Unit Report recently sponsored by Falcon and Associates which is titled: GCC trade and investment flows—The emerging market surge. The document points out that Emerging Markets will drive the global growth in the years ahead and says further: “We forecast that around two-thirds of the world’s economic growth will be generated by the emerging markets in the next five years. This means that by 2015 emerging markets are projected to account for 41 per cent of global GDP compared to an estimated 31 per cent in 2011.” 11

In the emerging markets China and India are the two countries which are focused presently by the GCC countries. China is preferred for its huge manufacturing capacity compared to India but India has an edge because its relationship is historical, as well as the cultural affinity shared by the region and there are more than six million Indians serving in the Gulf.

China for Islamic finance and banking:

a) Hong Kong has reviewed its plans for financial services. According to its Secretary for Financial Services and the Treasury, Professor K. C. Chan, it has tabled a plan at the Legislative Council (LegCo) supporting China’s National 12th Five Year Plan through the Mainland and Hong Kong by a closer Economic Partnership Arrangement.

He also said that to strengthen further competitiveness of the asset management industry, the government will, for example, enter into more comprehensive agreements for the avoidance of double taxation, and continue to develop an Islamic financial platform, modernise the Trustee Ordinance and step up overseas promotion.

Specific to Islamic finance, Chan said the government is close to finalising draft amendments to the relevant legislation with a view to levelling the playing field for common types of Islamic bonds and their conventional counter-parts as far as profits tax, property tax and stamp duty are concerned. The market will be consulted and it is planned that a bill will be presented to the LegCo for scrutiny in the next legislative session.12

b) Malaysian and Hong Kong banks are preparing to offer Islamic finance in China. Affin Holdings and Bank of East Asia expect their Islamic bank to become operational by 2012. Malaysian bank Affin Holdings Berhad and Hong Kong-based Bank of East Asia Ltd (BEA) expect their Islamic or Shariah banking operations in China to become operational by the second half of the year.13

c) The Arab Chamber of Commerce and Industry’s (ARABACCI) Shariah Committee has endeavoured to provide pre-eminent independent value-added Shariah compliance solutions to the Greater China region’s Islamic legal, commercial, banking, finance and insurance sectors, thereby contributing to the ongoing development of the Islamic system of financial management.14

We are of the opinion that our great country India should also do the same as China to attract GCC investments by opening up the market for Islamic finance to develop infrastructure and try to perform a growth rate of 9-9.5 per cent to compete with China.

Indian Initiatives

IN Kerala, the Left Democratic Front Government under the former Finance Minister, Thomas Isaac, initiated a Rs 1000 crore Non-Banking Financial Company (NBFC), named Al Barakah Financial Services Limited, based on the Shariah principles. This NBFC was with 11 per cent share of the Kerala State Industrial Development Corporation (KSIDC), a Kerala State Government institution, along with 89 per cent share of the public, mostly from the NRIs of Kerala. This initiative was taken after conducting a feasibility report by Ernst and Young. Dr Subramanian Swamy filed a petition in the Kerala High Court arguing that it is against the secular Constitution of the country mandate contained under Article 27 which categorically says that with regard to the freedom on payment of taxes for promotion of any particular religion, no person shall be compelled to pay any taxes, the proceeds of which are specifically appropriated in payment of expenses for the promotion or maintenance of any particular religion or religious denomination”.15 A landmark and historic judgement was pronounced by the High Court of Kerala chaired by Chief Justice L. Chelmeswar, and Justice P.R. Ramachandra Menon. The respondents were not only the State of Kerala, KSIDC and the newly formed Al Barakah Financial Services Ltd but also the Union of India represented by the Finance Ministry and Reserve Bank of India. The Indian Centre for Islamic Finance (ICIF) was also a respondent.

Dr Subramaniam Swamy was party in person and argued forcefully and on the other side the Advocate General of Kerala, senior advocate Nageshwara Rao and Dr Rajeev Dhavan debated the contentions of Dr Swamy and dealt with various constitutional and legal aspects, and finally Dr Swamy’s petition against the said NBFC was dismissed. The judgement also defined what Shariah is and quoted a very substantial portion from the book by H.A.R. Gibbs, the famous historian.16

The Judgement made a Significant Observation.

IT is well settled that a broad and liberal spirit should inspire those who are interested with the duty of interpreting the Constitution. The complexity of the administration of a modern state demands a great deal of ‘play in the joints’ of the state to secure the goal of maintaining benevolent neutrality with regard to religion. To disable the state by imposing fetters on the power of the state would neither be in accordance with the settled principles of constitutional interpretation or economic health of the state. Therefore, to restrict the commercial interaction of the state even with a religious denomination, on the ground that it is inconsistent with the declaration that the state should be a ‘Secular Republic’ would be illogical having regard to the scheme of the Constitution. In our opinion, such interpretation of the Constitution is not warranted.17

Further the judgement endorsed the argument submitted by Dr Rajeev Dhavan that “no specific prohibition contained in any statue which makes it impermissible to carry on the Islamic banking”.18

[Retd. Justice] V.R. Krishna Iyer, the doyen of the Indian judiciary, was forthright when he said inaugurating the International Conference on Islamic Finance: “I welcome Islamic finance in India, Islamic finance has proven successful in poverty alleviation and promoting sustainable growth in many countries, including the United States, and it is very relevant in our country where 20 million people are starving, Those who support humanism should welcome Islamic banking and finance in India.” Justice Iyer criticised those who oppose Islamic finance on religious grounds. “The interest-free Islamic finance is a better option for countries like India. People may doubt whether this system can survive without taking interest. But I can tell you that a system that supports social development will never fail.“ 19

When the Kerala Government announced its intention to tap the investments from the Middle East region through the Islamic finance route, Prasoon S. Majumdar, Editor, Economic Affairs, of the popular weekly, The Sunday Indian, and Dean- Academics of the prestigious Indian Institute of Planning and Management, wrote under the title- ‘Let us embrace Islamic Banking’ in which he said:

“The fact is, Islamic finance can do wonders, As such culturally, the Sharia philosophy is not much departed from the Indian ethos, but more than that if India can go ahead and create provisions for Islamic funds, then the latter would find a worthy investment destination, as India has a huge investment appetite for years to come and more than that returns on investment are relatively higher when compared to other parts of the world. It is needless to state that Islamic finance pose a huge opportunity and we should be proactively thinking in provisioning the same within the country. Post-9/11, petro-dollars are actively eyeing for a safe investment destination as they have been extremely apprehensive about investing in the US. And this is the opportunity that India should avail, given the fact that as a destination its economic scenario is not just safe but vibrant. It has been reported that France has already amended its laws to issue sukuk (Islamic bond) of one billion euro. Also Indonesia has launched its dollar sukuk earlier this year, which was hugely successful. And lastly if most developed countries like UK, Japan, Singapore and Hong Kong have embraced Islamic finance and banking, then what are we waiting for?”20

The Boston Consulting Group (BCG), a leading financial and management consultant group of the world and knowledge partner of the FICCI-IBA (Federation of Indian Chambers of Commerce and Industries—Indian Banks Association) conference every year, has come out with an article on ‘Islamic Banking—Can you afford to ignore it?’21 The BCG says: “What is more, Islamic banking is not just for Muslims nor is it in any way arcane or esoteric. At its core it is banking that follows a stringent set of principles, aims to be socially and ethically responsible, and embraces high transparency and shared risk. Successful marketing campaigns targeted at non- Muslims emphasise just such characteristics. Indeed some pundits have drawn an analogy between Islamic banking products and various types of cuisine that are prepared under strict faith based guidelines- but are nonetheless appealing to the general population”.

R. Seetharaman, CEO, Doha Bank, said: “I recommend considering the shariah-based banking systems and shariah-compliant products that would greatly protect the interests of entrepreneur and the banks. Equity-based finance in an ethical banking model has proved its advantages over interest-based lending in the region’s experience and can be considered for emulation in India also.”22 Thus it is proved that India needs Islamic finance and banking for inclusive growth of the Indians as a whole and for the infrastructure development of the country and to compete in development with China.

Bogus Islamic Banks in Muslim Areas

DR ATHER FAROUQUI strongly comments on the so-called Islamic banks operating in almost every locality where a substantial Muslim population exists. Though the learned author has alleged thrice about these unscrupulous operators in his article, there is neither any objective study presented nor any statistical data provided to substantiate his argument.

In order to provide interest-free loans to the poor and needy, several interest-free credit societies had been established throughout the country by various individuals and institutions to provide loans on pledging gold or other valuables by paying a small service charge. They are called Baitulmals or interest-free credit societies. Even today in the southern part of India, at least two hundred and more such societies are being operated successfully. In some of them small traders and petty shopkeepers are given interest-free loans on the guarantee of some trade association or responsible person in the area.

Dr Ather Farooqui might be mentioning some investment companies claiming to be based on shariah that had come up mostly in north India and a few of them in the south as well. Some of them failed due to lack of professionalism and there may definitely be some black sheep who have committed fraud and duped the investors.

In this regard two well-researched documents, one by Dr Mohammed Bagsiraj, titled “Islamic Financial Institution of India”,23 and another document by Dr Rahmatullah of the All India Council of Muslim Economic Upliftment (AICMEU), Mumbai, titled, ”IFFIs of India in Crisis”,24 should be studied to learn what actually happened to those interest-free financial institutions (IFFIs).

In the State of Kerala, when several suicide deaths took place in the 1990s, by those not able to repay small loans based on interest, a campaign was undertaken by several groups, including both religious and secular ones, and the outcome was the formation of several interest-free credit societies and investment companies. Outstanding among them was the AICL–Alternative Investments and Credits Limited,25 which was inaugurated in 2000 by the then Chief Minister, A.K. Antony, and since then it is running successfully. Islamic Products—are they viable in the modern financial world? This is the question Dr Farouqui is posing referring to Muhammed Saleem’s article “Is Islamic Banking a $300 billion deception?” Reference can be given to the presentation, “Islamic Finance Products”,26 prepared by Dr Vijay Mahajan, Chairman, Basix, and one of the members of the Dr Raghuram Rajan Committee on Financial Sector Reforms, to counter the arguments put by Saleem’s apprehensions.

Today there are international organisations like the AAOIFI (Accounting and Auditing Organisations for Islamic Finance Institutions) in Bahrain and IFSB (Islamic Finance Service Board) in Malaysia which are both recognised by the IMF and World Bank. Most of the products are standardised and performing well throughout the world. ‘World Bank considers Islamic Finance as a priority area,’ according to Ms. Muliyani Indrawati, Managing Director, World Bank.27 The IMF has also come out with several documents with respect to Islamic finance and banking. Notable among them are:

a) IMF working paper “Introducing Islamic Banks into Conventional Banking Systems“ by Juan Sole.28

b) “The Effects of the Global Crisis on Islamic and Conventional Banks: A Comparative Study” by Maher Hasan and Jemma Drid. 29

Not only the IMF and World Bank, but regulatory bodies of the modern, secular and industrialised countries too have come out with documents with reference to Islamic finance and the products offered by them. For example, the FSA, Financial Services Authority, of the UK has brought out documents like ‘Islamic Finance in the UK: Regulation and Challenges’ by Ali Ravalia and others and His Majesty’s Treasury has produced ‘The development of Islamic finance in the UK’ that highlights the various steps undertaken by Britain to make the country a hub and house of Islamic finance. In the East, Singapore’s Monetary Authority of Singapore (MAS) has brought out documents like ‘Risks and Regulation of Islamic Banks: a Perspective from a Non-Islamic Jurisdiction’ to accommodate Islamic finance in conventional banks. These documents have been referred casually by the learned author in his article under discussion (see reference no 11) which has to be studied in depth and detail to arrive at the right conclusion regarding the functioning and the products offered in non-OIC jurisdictions. Instead, he deals elaborately with what is happening in Pakistan and Saudi Arabia which have no relevance to a country like ours that is secular and plural in nature.
Prime Minister Manmohan Singh has himself announced in Kuala Lampur last year that he would ask the RBI to look into the successful model of Islamic finance in Malaysia.30

Documents of RBI

IN 2005, the RBI constituted a working group under Anand Sinha, then Executive Director, RBI, to examine “financial instruments used in Islamic banking”. The report mentions that if the banks in India are to be allowed to do Islamic banking; appropriate amendments have to be made in the Banking Regulation Act. Interestingly the report under the caption Overview of the philosophy and basic principles of Islamic Banking, mentions that in addition to non-acceptance of interest-based transactions, the fundamental tenet is that of fairness. It envisages ethical practices, contributions towards a more equitable distribution of income and wealth and active participation in achieving the goals and objectives of an Islamic economy.31

An article titled “Islamic Banking—Banking for a Change” by Bindu Vasu, Legal Advisor of the RBI in RBI Legal Views and News Journal concludes: “As an initiative towards introduction of Islamic banking in India a single window can be set up in some banks like State Bank of India to do Islamic Banking. This can tap the unused money lying idle that can be utilized for the economic and social benefit of the nation.” (2005/Vol 10-Issue No 2 page no 19)

Conclusion

THE financial tsunami of 2008 and the recent euro zone financial crisis have proved that the world needs an alternative financial system based on ethical values and socially responsible investment mechanism that calls for equity finance instead of debt finance and derivatives. As both the market and Marxist financial systems have failed to satisfy the masses throughout the world as the Occupy Wall Street movement had demonstrated, the world is looking for a viable alternative and wishes to experiment with Islamic finance which is growing at the rate of 15 per cent every year.

India needs alternative finance and banking in terms of Islamic finance and banking for inclusive growth of the marginalised and the minorities— the Aam Aadmi of the country and also for the infrastructure development to reach a growth rate of 8-10 per cent.

It is therefore urged that in our country, the Government of India—the Finance Ministry and RBI—should now re-examine its stand on Islamic finance and create an attractive environment for Islamic finance investors to participate in the market as undertaken by modern, secular and industrialised countries.

ENDNOTES

 

1. Klaus Schwab in his welcome address at the World Economic Forum 2009 https://members.weforum.org/pdf/AM_….

2. Article “Islamic Finance—A Moral Compass for Banking-CSR Asia” by Jayanthi Naidu Desan. www.csr-asia.com/upload/cove…

3. The Vatican’s official newspaper L’Osservatore Romano said in an article dated March 5, 2009.

4. Article “Failure of American financial institutions is a reason to rejoice” by Prof Vaidyanathan. http://www. dnaindia.com/money/comment_failure-of-american-financial-institutions-is-a-reason-to-rejoice_1192432

5. The New Indian Express, page no.5, Chennai edition dated April 6, 2010. http://epaper.expressbuzz.com/NE/NE… 005_041.shtml?Mode=1

6. Small loans add up to lethal debts. http://www. thehindu.com/news/national/article2932670.ece

7. Andhra Pradesh Government has announced to introduce interest-free loans. http://www. mydigitalfc.com/news/andhra-launch- interest-free-loans-blow-mfis-010

8. Chapter 3: Broadening Access to Finance, page 35. http://planning commission.gov.in/reports/genrep/report_fr.htm

9. India infrastructure roadblocks to deter growth—S&P. http://in.reuters.com/article/2011/…

10. The report made by credit Analyst Allan Redimerio and Andrew Palmer, dated October 13, 2011, Standard and Poor’s. www.icif.in/papers.php?event…

11. Economist Intelligence Unit Report. http://graphics. eiu.com/upload/eb/GCC_Trade_and_ Investment_ Flows_Falcon%20South_Web_22_ March_2011.pdf

12. Hong Kong Reviews Plans For Financial Services. http://www.tax-news.com/news/Hong_K… Plans_For_Financial_Services____54402.html

13. Malaysian and Hong Kong banks to offer Islamic finance in China. http://asianbankingandfinance.net/l…

14. Website of Arab Chamber of Commerce and Industry, Hongkong. http://www.arabcci.org/SAC_mission.htm

15. Page No 9, WP©.No. 35180 of 2009(S), Kerala High Court Judgement.

16. Pages 38-40, Kerala High Court Judgment.

17. Pages No 36, Kerala High Court Judgment.

18. Pages No 55, Kerala High Court Judgement.

19. Arab news http://arabnews.com/economy/islamic…; The Hindu http://www.hindu.com/2010/10/05/sto…

20. The Sunday Indian, “Let us embrace Islamic Banking”. http://www.iipmthinktank.com/asp/mu… id=8302&pageno=1

21. Boston Consulting Group—Article “Islamic Banking: Can we afford to ignore it“. www.eiu.com/report_dl.asp? mode=fi&fi=973224282.PDF

22. In a Keynote address in Doha May 26, 2008 at a Meeting of Indian finance and management professionals

23. Report: Islamic Financial Institution of India by Dr Mohammed Bagsiraj. http://icif.in/papers.php

24. Report: Interest-free Financial Institutions of India in Crisis. http://www.aicmeu.org/Interest-free… Institutions_of_India_in_Crisis.htm

25. Website: http://www.aicl-india.com/

26. Islamic Finance Products by Dr Vijay Mahajan. http://www.icif.in/presentation.php…

27. World Bank Declares Islamic Finance A Priority Area. http://memrieconomicblog.org/bin/co…

28. Introducing Islamic Banks into Conventional Banking Systems by Juan Sole. http://www.imf.org/external/pubs/ft…

29. “The Effects of the Global Crisis on Islamic and Conventional Banks: A Comparative Study” by Maher Hasan and Jemma Drid. http://www.imf.org/external/pubs/ft…

30. Economic Times–PM asks RBI to look into Malaysian Islamic banking model. http://articles.economictimes. indiatimes.com/2010-10-27/news/27568806_1_islamic-banking-interest-free- banking-trillion

31. Report of the Working Group to Examine Financial Instruments used in Islamic Banking, page No 3. http://icif.in/papers.php#

H. Abdur Raqeeb is the General Secretary of the Indian Centre for Islamic Finance.
His e-mail is abdraqeeb@gmail.com and www.icaf.in is the ICAF website.

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Maulana Abul Kalaam Azad - THE MAN WHO KNEW THE FUTURE -

Niloufer Bhagwat nilouferin@vsnl.net	12:01 PM (43 minutes ago)
to ial, Faizi, humanrights-mo.

 

----- Original Message -----

Sent: Tuesday, May 01, 2012 2:59 PM

Subject: Maulana Azad interview-- worth reading and reflecting

 

Maulana Azad interview-- worth reading and reflecting
This invaluable document has been resurrected and translated by former Indian union minister Arif Mohammad Khan for Covert Magazine. The redoubtable Maulana’s predictions about what would happen if Pakistan  was  created, have come so uncannily true that they almost read like newspaper headlines.
 

THE MAN WHO KNEW THE FUTURE
 

by Shorish Kashmiri, Matbooat Chattan, Lahore

Congress president Maulana Abul Kalam Azad gave the following
interview to journalist Shorish Kashmiri for a Lahore based Urdu
magazine, Chattan, in April 1946. It was a time when the Cabinet Mission was holding its proceedings in Delhi and Simla. Azad made some startling predictions during the course of the interview, saying that religious conflict would tear apart Pakistan and its eastern half would carve out its own future. He even said that Pakistan’s incompetent rulers might pave the way for military rule. According to Shorish Kashmiri, Azad had earmarked the early hours of the morning for him and the interview was conducted over a period of two weeks. This interview has not been published in any book so far — neither in the Azad centenary volumes nor in any other book comprising his writing or speeches — except for Kashmiri’s own book Abul Kalam Azad, which was printed only once by Matbooat Chattan Lahore, a now-defunct publishing house. Former Union
Cabinet Minister Arif Mohammed Khan discovered the book after searching for many years and translated the interview for COVERT

Q: The Hindu Muslim dispute has become so acute that it has
foreclosed any possibility of reconciliation. Don’t you think that in
this situation the birth of Pakistan has become inevitable?
 

A: If Pakistan were the solution of Hindu Muslim problem, then I
would have extended my support to it. A section of Hindu opinion is now turning in its favour. By conceding NWFP, Sind, Balochistan and half of Punjab on one side and half of Bengal on the other, they think they will get the rest of India — a huge country that would be free from any claims of communal nature. If we use the Muslim League terminology, this new India will be a Hindu state both practically and temperamentally.
 

This will not happen as a result of any conscious decision, but will be a logical consequence of its social realities. How can you expect a society that consists 90% of Hindus, who have lived with their ethos and values since prehistoric times, to grow differently? The factors that laid the foundation of Islam in Indian society and created a powerful following have become victim of the politics of partition. The communal hatred it has generated has completely extinguished all possibilities of spreading and preaching Islam. This communal politics has hurt the religion beyond measure. Muslims have turned away from the Quran. If they had taken their lessons from the Quran and the life of the Holy Prophet and had not forged communal politics in the name of religion then Islam’s growth would not have halted. By the time of the decline of the Mughal rule, the Muslims in India were a little over 22.5 million, that is about 65% of the present numbers. Since then the numbers kept
increasing. If the Muslim politicians had not used the offensive
language that embittered communal relations, and the other section
acting as agents of British interests had not worked to widen the
Hindu-Muslim breach, the number of Muslims in India would have grown higher. The political disputes we created in the name of religion have projected Islam as an instrument of political power and not what it is — a value system meant for the transformation of human soul. Under British influence, we turned Islam into a confined system, and following in the footsteps of other communities like Jews, Parsis and Hindus we transformed ourselves into a hereditary community. The Indian Muslims have frozen Islam and its message and divided themselves into many sects. Some sects were clearly born at the instance of colonial power.
 

Consequently, these sects became devoid of all movement and dynamism and lost faith in Islamic values. The hallmark of Muslim existence was striving and now the very term is strange to them. Surely they are Muslims, but they follow their own whims and desires. In fact now they easily submit to political power, not to Islamic values. They prefer the religion of politics not the religion of the Quran. Pakistan is a political standpoint. Regardless of the fact whether it is the right solution to the problems of Indian Muslims, it is being demanded in the name of Islam. The question is when and where Islam provided for division of territories to settle populations on the basis of belief and unbelief. Does this find any sanction in the Quran or the traditions of the Holy Prophet? Who among the scholars of Islam has divided the dominion of God on this basis? If we accept this division in principle, how shall we reconcile it with Islam as a universal system? How shall we
explain the ever growing Muslim presence in non-Muslim lands including India? Do they realise that if Islam had approved this principle then it would not have permitted its followers to go to the non-Muslim lands and many ancestors of the supporters of Pakistan would not have had even entered the fold of Islam? Division of territories on the basis of religion is a contraption devised by Muslim League. They can pursue it as their political agenda, but it finds no sanction in Islam or Quran. What is the cherished goal of a devout Muslim? Spreading the light of Islam or dividing territories along religious lines to pursue political ambitions? The demand for Pakistan has not benefited Muslims in any manner. How Pakistan can benefit Islam is a moot question and will largely depend on the kind of leadership it gets. The impact of western thought and philosophy has made the crisis more serious. The way the
leadership of Muslim League is conducting itself will ensure that Islam will become a rare commodity in Pakistan and Muslims in India. This is a surmise and God alone knows what is in the womb of future. Pakistan, when it comes into existence, will face conflicts of religious nature.
 

As far as I can see, the people who will hold the reins of power will
cause serious damage to Islam. Their behaviour may result in the total alienation of the Pakistani youth who may become a part of non-religious movements. Today, in Muslim minority states the Muslim youth are more attached to religion than in Muslim majority states. You will see that despite the increased role of Ulema, the religion will lose its sheen in  Pakistan.

 

Q: But many Ulema are with Quaid-e-Azam [M.A. Jinnah].
 

A: Many Ulema were with Akbare Azam too; they invented a new religion  for him. Do not discuss individuals. Our history is replete with the doings of the Ulema who have brought humiliation and disgrace to Islam in every age and period. The upholders of truth are exceptions. How many of the Ulema find an honourable mention in the Muslim history of the last 1,300 years? There was one Imam Hanbal, one Ibn Taimiyya. In India we remember no Ulema except Shah Waliullah and his family. The courage of Alf Sani is beyond doubt, but those who filled the royal office with
complaints against him and got him imprisoned were also Ulema. Where are they now? Does anybody show any respect to them?

 

Q: Maulana, what is wrong if Pakistan becomes a reality? After all,
 “Islam” is being used to pursue and protect the unity of the community.
 

 A: You are using the name of Islam for a cause that is not right by
 Islamic standards. Muslim history bears testimony to many such
enormities. In the battle of Jamal [fought between Imam Ali and Hadrat Aisha, widow of the Holy Prophet] Qurans were displayed on lances. Was that right? In Karbala the family members of the Holy Prophet were martyred by those Muslims who claimed companionship of the Prophet. Was that right? Hajjaj was a Muslim general and he subjected the holy mosque at Makka to brutal attack. Was that right? No sacred words can justify or sanctify a false motive.

If Pakistan was right for Muslims then I would have supported it. But  I see clearly the dangers inherent in the demand. I do not expect people to follow me, but it is not possible for me to go against the call of my conscience. People generally submit either to coercion or to the lessons of their experience. Muslims will not hear anything against Pakistan unless they experience it. Today they can call white black, but they will not give up Pakistan. The only way it can be stopped now is either for the government not to concede it or for Mr Jinnah himself — if he agrees to some new proposal.
 

Now as I gather from the attitude of my own colleagues in the working  committee, the division of India appears to be certain. But I must warn that the evil consequences of partition will not affect India alone, Pakistan will be equally haunted by them. The partition will be based on the religion of the population and not based on any natural barrier like mountain, desert or river. A line will be drawn; it is difficult to say how durable it would be.
 

We must remember that an entity conceived in hatred will last only as long as that hatred lasts. This hatred will overwhelm the relations
between India and Pakistan. In this situation it will not be possible
for India and Pakistan to become friends and live amicably unless some catastrophic event takes place. The politics of partition itself will act as a barrier between the two countries. It will not be possible for Pakistan to accommodate all the Muslims of India, a task beyond her territorial capability. On the other hand, it will not be possible for the Hindus to stay especially in West Pakistan. They will be thrown out or leave on their own. This will have its repercussions in India and the Indian Muslims will have three options before them:

 

 1. They become victims of loot and brutalities and migrate to
 Pakistan; but how many Muslims can find shelter there?
 

2. They become subject to murder and other excesses. A substantial
number of Muslims will pass through this ordeal until the bitter
memories of partition are forgotten and the generation that had lived through it completes its natural term.
 

3. A good number of Muslims, haunted by poverty, political wilderness and regional depredation decide to renounce Islam.
 

The prominent Muslims who are supporters of Muslim League will leave for Pakistan. The wealthy Muslims will take over the industry and business and monopolise the economy of Pakistan. But more than 30 million Muslims will be left behind in India. What promise Pakistan holds for them? The situation that will arise after the expulsion of Hindus and Sikhs from Pakistan will be still more dangerous for them.
 

Pakistan itself will be afflicted by many serious problems. The greatest danger will come from international powers who will seek to control the new country, and with the passage of time this control will become tight. India will have no problem with this outside interference as it will sense danger and hostility from Pakistan.
 

The other important point that has escaped Mr Jinnah’s attention is
Bengal. He does not know that Bengal disdains outside leadership and rejects it sooner or later. During World War II, Mr Fazlul Haq revolted against Jinnah and was thrown out of the Muslim League. Mr H.S. Suhrawardy does not hold Jinnah in high esteem. Why only Muslim League, look at the history of Congress. The revolt of Subhas Chandra Bose is known to all. Gandhiji was not happy with the presidentship of Bose and turned the tide against him by going on a fast unto death at Rajkot.
 

Subhas Bose rose against Gandhiji and disassociated himself from the Congress. The environment of Bengal is such that it disfavours
leadership from outside and rises in revolt when it senses danger to its rights and interests.
 

The confidence of East Pakistan will not erode as long as Jinnah and Liaquat Ali are alive. But after them any small incident will create resentment and disaffection. I feel that it will not be possible for East Pakistan to stay with West Pakistan for any considerable period of time. There is nothing common between the two regions except that they call themselves Muslims. But the fact of being Muslim has never created durable political unity anywhere in the world. The Arab world is before us; they subscribe to a common religion, a common civilisation and culture and speak a common language. In fact they acknowledge even territorial unity. But there is no political unity among them. Their systems of government are different and they are often engaged in mutual recrimination and hostility. On the other hand, the language, customs and way of life of East Pakistan are totally different from West Pakistan. The moment the creative warmth of Pakistan cools down, the contradictions will emerge and will acquire assertive overtones. These will be fuelled by the clash of interests of international powers and consequently both wings will separate. After the separation of East Pakistan, whenever it happens, West Pakistan will become the battleground of regional contradictions and disputes. The assertion of sub-national identities of Punjab, Sind, Frontier and Balochistan will open the doors for outside interference. It will not be long before the international powers use the diverse elements of Pakistani political leadership to break the country on the lines of Balkan and Arab states.
 

Maybe at that stage we will ask ourselves, what have we gained and what have we lost.
 

The real issue is economic development and progress, it certainly is
not religion. Muslim business leaders have doubts about their own
ability and competitive spirit. They are so used to official patronage
and favours that they fear new freedom and liberty. They advocate the two-nation theory to conceal their fears and want to have a Muslim state where they have the monopoly to control the economy without any competition from competent rivals. It will be interesting to watch how long they can keep this deception alive.
 

I feel that right from its inception, Pakistan will face some very
 serious problems:
 

1. The incompetent political leadership will pave the way for
military dictatorship as it has happened in many Muslim countries.
 

2. The heavy burden of foreign debt.
 

3. Absence of friendly relationship with neighbours and the
possibility of armed conflict.
 

 4. Internal unrest and regional conflicts.
 

 5. The loot of national wealth by the neo-rich and industrialists of
 Pakistan.
 

6. The apprehension of class war as a result of exploitation by the
neo-rich.
 

7. The dissatisfaction and alienation of the youth from religion and
the collapse of the theory of Pakistan.
 

 8. The conspiracies of the international powers to control Pakistan.

 In this situation, the stability of Pakistan will be under strain and
 the Muslim countries will be in no position to provide any worthwhile help. The assistance from other sources will not come without strings and it will force both ideological and territorial compromises.

Q: But the question is how Muslims can keep their community identity intact and how they can inculcate the attributes of the citizens of a Muslim state.
 

A: Hollow words cannot falsify the basic realities nor slanted
questions can make the answers deficient. It amounts to distortion of the discourse. What is meant by community identity? If this community identity has remained intact during the British slavery, how will it come under threat in a free India in whose affairs Muslims will be equal participants? What attributes of the Muslim state you wish to cultivate?
 

The real issue is the freedom of faith and worship and who can put a cap on that freedom. Will independence reduce the 90 million Muslims into such a helpless state that they will feel constrained in enjoying their religious freedom? If the British, who as a world power could not snatch this liberty, what magic or power do the Hindus have to deny this freedom of religion? These questions have been raised by those, who, under the influence of western culture, have renounced their own heritage and are now raising dust through political gimmickry.
 

Muslim history is an important part of Indian history. Do you think
the Muslim kings were serving the cause of Islam? They had a nominal relationship with Islam; they were not Islamic preachers. Muslims of India owe their gratitude to Sufis, and many of these divines were treated by the kings very cruelly. Most of the kings created a large band of Ulema who were an obstacle in the path of the propagation of Islamic ethos and values. Islam, in its pristine form, had a tremendous appeal and in the first century won the hearts and minds of a large number of people living in and around Hejaz. But the Islam that came to India was different, the carriers were non-Arabs and the real spirit was missing. Still, the imprint of the Muslim period is writ large on the culture, music, art, architecture and languages of India. What do the cultural centres of India, like Delhi and Lucknow, represent? The underlying Muslim spirit is all too obvious.
 

If the Muslims still feel under threat and believe that they will be
reduced to slavery in free India then I can only pray for their faith
and hearts. If a man becomes disenchanted with life he can be helped to revival, but if someone is timid and lacks courage, then it is not possible to help him become brave and gutsy. The Muslims as a community have become cowards. They have no fear of God, instead they fear men.
 

This explains why they are so obsessed with threats to their existence —  a figment of their imagination.
 

After British takeover, the government committed all possible
excesses against the Muslims. But Muslims did not cease to exist. On the contrary, they registered a growth that was more than average. The Muslim cultural ethos and values have their own charm. Then India has large Muslim neighbours on three sides. Why on earth the majority in this country will be interested to wipe out the Muslims? How will it promote their self interests? Is it so easy to finish 90 million people?
 

In fact, Muslim culture has such attraction that I shall not be
surprised if it comes to have the largest following in free India.
 

The world needs both, a durable peace and a philosophy of life. If
the Hindus can run after Marx and undertake scholarly studies of the philosophy and wisdom of the West, they do not disdain Islam and will be happy to benefit from its principles. In fact they are more familiar with Islam and acknowledge that Islam does not mean parochialism of a hereditary community or a despotic system of governance. Islam is a universal call to establish peace on the basis of human equality. They know that Islam is the proclamation of a Messenger who calls to the worship of God and not his own worship. Islam means freedom from all social and economic discrimination and reorganization of society on three basic principles of God-consciousness, righteous action and knowledge. 

In fact, it is we Muslims and our extremist behaviour that
has created an aversion among non-Muslims for Islam. If we had not allowed our selfish ambitions to soil the purity of Islam then many seekers of truth would have found comfort in the bosom of Islam.
 

Pakistan has nothing to do with Islam; it is a political demand that is projected by Muslim League as the national goal of Indian Muslims. I feel it is not the solution to the problems Muslims are facing. In fact it is bound to create more problems.
 

The Holy Prophet has said, “God has made the whole earth a mosque for  me.” Now do not ask me to support the idea of the partition of a mosque.
 

If the nine-crore Muslims were thinly scattered all over India, and
demand was made to reorganise the states in a manner to ensure their majority in one or two regions, that was understandable. Again such a demand would not have been right from an Islamic viewpoint, but justifiable on administrative grounds. But the situation, as it exists, is drastically different. All the border states of India have Muslim majorities sharing borders with Muslim countries. Tell me, who can eliminate these populations? By demanding Pakistan we are turning our eyes away from the history of the last 1,000 years and, if I may use the League terminology, throwing more than 30 million Muslims into the lap of “Hindu Raj”. 

 

The Hindu Muslim problem that has created political tension between Congress and League will become a source of dispute
between the two states and with the aid of international powers this may erupt into full scale war anytime in future.
 

The question is often raised that if the idea of Pakistan is so
fraught with dangers for the Muslims, why is it being opposed by the Hindus? I feel that the opposition to the demand is coming from two quarters. One is represented by those who genuinely feel concerned about imperial machinations and strongly believe that a free, united India will be in a better position to defend itself. On the other hand, there is a section who opposes Pakistan with the motive to provoke Muslims to become more determined in their demand and thus get rid of them. Muslims have every right to demand constitutional safeguards, but partition of India cannot promote their interests. The demand is the politically incorrect solution of a communal problem.
 

In future India will be faced with class problems, not communal
disputes; the conflict will be between capital and labour. The communist and socialist movements are growing and it is not possible to ignore them. These movements will increasingly fight for the protection of the interest of the underclass. The Muslim capitalists and the feudal classes are apprehensive of this impending threat. Now they have given this whole issue a communal colour and have turned the economic issue into a religious dispute. But Muslims alone are not responsible for it.
 

This strategy was first adopted by the British government and then
endorsed by the political minds of Aligarh. Later, Hindu
short-sightedness made matters worse and now freedom has become contingent on the partition of India.
 

Jinnah himself was an ambassador of Hindu-Muslim unity. In one
Congress session Sarojini Naidu had commended him with this title. He was a disciple of Dadabhai Naoroji. He had refused to join the 1906 deputation of Muslims that initiated communal politics in India. In 1919 he stood firmly as a nationalist and opposed Muslim demands before the Joint Select Committee. On 3 October 1925, in a letter to the Times of India he rubbished the suggestion that Congress is a Hindu outfit. In the All Parties Conferences of 1925 and 1928, he strongly favoured a joint electorate. While speaking at the National Assembly in 1925, he said, “I am a nationalist first and a nationalist last” and exhorted his colleagues, be they Hindus or Muslims, “not to raise communal issues in the House and help make the Assembly a national institution in the truest sense of the term”.
 

In 1928, Jinnah supported the Congress call to boycott Simon
Commission. Till 1937, he did not favour the demand to partition India.
 

In his message to various student bodies he stressed the need to work for Hindu Muslim unity. But he felt aggrieved when the Congress formed governments in seven states and ignored the Muslim League. In 1940 he decided to pursue the partition demand to check Muslim political decline. In short, the demand for Pakistan is his response to his own political experiences. Mr Jinnah has every right to his opinion about me, but I have no doubts about his intelligence. As a politician he has worked overtime to fortify Muslim communalism and the demand for Pakistan. Now it has become a matter of prestige for him and he will not give it up at any cost.

 

 Q: It is clear that Muslims are not going to turn away from their
demand for Pakistan. Why have they become so impervious to all reason and logic of arguments?
 

A: It is difficult, rather impossible, to fight against the misplaced
enthusiasm of a mob, but to suppress one’s conscience is worse than death. Today the Muslims are not walking, they are flowing. The problem is that Muslims have not learnt to walk steady; they either run or flow with the tide. When a group of people lose confidence and self-respect, they are surrounded by imaginary doubts and dangers and fail to make a distinction between the right and the wrong. The true meaning of life is realised not through numerical strength but through firm faith and righteous action. 

 

British politics has sown many seeds of fear and distrust in the mental field of Muslims. Now they are in a frightful state, bemoaning the departure of the British and demanding partition
before the foreign masters leave. Do they believe that partition will
avert all the dangers to their lives and bodies? If these dangers are
real then they will still haunt their borders and any armed conflict
will result in much greater loss of lives and possessions.

Q: But Hindus and Muslims are two different nations with different
 and disparate inclinations. How can the unity between the two be achieved?
 

A: This is an obsolete debate. I have seen the correspondence between Allama Iqbal and Maulana Husain Ahmad Madni on the subject. In the Quran the term qaum has been used not only for the community of believers but has also been used for distinct human groupings generally. What do we wish to achieve by raising this debate about the etymological scope of terms like millat [community], qaum [nation] and ummat [group]? In religious terms India is home to many people — the Hindus, Muslims, Christians, Parsis, Sikhs etc. The differences between Hindu religion and Islam are vast in scope. But these differences cannot be allowed to become an obstacle in the path of India gaining her freedom nor do the two distinct and different systems of faith negate the idea of unity of India. The issue is of our national independence and how we can secure it. Freedom is a blessing and is the right of every human being. It cannot be divided on the basis of religion.
 

Muslims must realise that they are bearers of a universal message.
 

They are not a racial or regional grouping in whose territory others
cannot enter. Strictly speaking, Muslims in India are not one community; they are divided among many well-entrenched sects. You can unite them by arousing their anti-Hindu sentiment but you cannot unite them in the name of Islam. To them Islam means undiluted loyalty to their own sect.
 

Apart from Wahabi, Sunni and Shia there are innumerable groups who owe allegiance to different saints and divines. Small issues like raising hands during the prayer and saying Amen loudly have created disputes that defy solution. The Ulema have used the instrument of takfeer [fatwas declaring someone as infidel] liberally. Earlier, they used to take Islam to the disbelievers; now they take away Islam from the believers. Islamic history is full of instances of how good and pious Muslims were branded kafirs. Prophets alone had the capability to cope with these mindboggling situations. Even they had to pass through times of afflictions and trials. The fact is that when reason and intelligence are abandoned and attitudes become fossilised then the job of the reformer becomes very difficult.
 

But today the situation is worse than ever. Muslims have become firm in their communalism; they prefer politics to religion and follow their worldly ambitions as commands of religion. History bears testimony to the fact that in every age we ridiculed those who pursued the good with consistency, snuffed out the brilliant examples of sacrifice and tore the flags of selfless service. Who are we, the ordinary mortals; even high ranking Prophets were not spared by these custodians of traditions and customs.

 

Q: You closed down your journal Al-Hilal a long time back. Was it due to your disappointment with the Muslims who were wallowing in intellectual desolation, or did you feel like proclaiming azan [call to prayer] in a barren desert?
 

A: I abandoned Al-Hilal not because I had lost faith in its truth.
 

This journal created great awareness among a large section of Muslims.
 

They renewed their faith in Islam, in human freedom and in consistent pursuit of righteous goals. In fact my own life was greatly enriched by this experience and I felt like those who had the privilege of learning under the companionship of the Messenger of God. My own voice entranced me and under its impact I burnt out like a phoenix. Al-Hilal had served its purpose and a new age was dawning. Based on my experiences, I made a reappraisal of the situation and decided to devote all my time and energy for the attainment of our national freedom. I was firm in my belief that freedom of Asia and Africa largely depends on India’s freedom and Hindu Muslim unity is key to India’s freedom. Even before
the First World War, I had realised that India was destined to attain
freedom, and no power on earth would be able to deny it. I was also clear in my mind about the role of Muslims. I ardently wished that Muslims would learn to walk together with their countrymen and not give an opportunity to history to say that when Indians were fighting for their independence, Muslims were looking on as spectators. Let nobody say that instead of fighting the waves they were standing on the banks and showing mirth on the drowning of boats carrying the freedom fighters  [?].