It is not Modi government that recovered 100 tons of gold from England mortgaged by the Congress!

The pledged gold was retrieved in November 1991, during the Congress administration, but logistical difficulties prevented it from being returned to India. The Modi government brought this up now because of international political tensions.

Claim

*Good news for the people of India.* Our Narendra Modi government has today recovered 100 tons of Indian gold which was pledged by the Congress government to the British government in 1991.

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Explanation

WhatsApp users are spreading a story claiming that Narendra Modi has retrieved 100 tons of Indian gold that were pledged to the British government in 1991, during the Congress party’s rule.

The viral image states “for the first time since 1991, RBI brought back 100 tonnes of gold from the UK to India in its vaults.”

What’s the truth?

The viral image in circulation proclaiming the recovery of 100 tons of gold from England features the logo “The Tatva” on it.  Using this as a clue we searched the internet and discovered that this image was published on May 31 on an Instagram page named “thetatvaindia.”

 

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A post shared by The Tatva (@thetatvaindia)

After doing some investigation, we discovered that the ‘Business Today’ website had a piece about this in an article posted on June 1.

As per the article, there was a foreign exchange crisis in 1990–91. India then pledged its gold as collateral for a $405 million loan to the Bank of England. Then, as reported in the press, the Government of India redeemed this mortgage in November 1991.

The article went on to add, “Although the loan was repaid by November 1991, the RBI chose to keep the gold in the UK for logistical reasons, commercial profit, etc. The RBI’s recent move to repatriate gold from the UK likely reflects the geopolitical tensions between international countries.”

Further investigation revealed that on May 31 of this year, the “Business Standard” released a report regarding the gold reserves held by the Reserve Bank of India.

According to the report, previously, India had stored 308.03 tonnes of gold. This figure, along with the 100.28 tonnes of gold currently brought in from the Bank of England, takes India’s gold reserves in India to 408.31 tonnes. Apart from this, India owns 413.79 tonnes of gold in other countries. So India has a total gold reserve of 822.1 tonnes, the report said.

During the Congress regime itself (1991, Nov.), the gold pledged during the foreign exchange crisis (1990–91) was retrieved. The gold has now been transported to India from the Bank of England.

Nevertheless, false information is being circulated on WhatsApp, claiming that this gold has only been recovered under the Modi administration.

Conclusion:

The rumor that the 100 tonnes of gold that the Congress mortgaged to the UK in 1991 has now been reclaimed by the Modi government is inaccurate. It was retrieved in November of 1991. But the gold that was preserved in the Bank of England has now been brought to India and is in the RBI’s care.

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Indu Meenakshi

Indu Meenakshi is a former Microbiologist-turned-journalist, works as a Sub-Editor at YouTurn. She additionally holds Master’s in Management and English Literature. As a fact-checker, her job entails actively dispelling false information found online, exposing fake news, and raising public awareness.
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