I thought I would just chime in to say that I was (seemingly) having the 
same problem as described by Prasanna, and the "sledgehammer" approach 
described by Colin has solved it for me.

The first time I had tried installing rails, I was following the guide on 
https://gorails.com/setup/ubuntu/14.04 which prescribes calling,

curl -L https://get.rvm.io | bash -s stable


(without --rails), and calling "gem install rails" later. I'm not entirely 
sure why that borks things. My guess is that the script when called with 
--rails installs whatever magic package I was missing.

Cheers,
Erik

On Monday, 21 September 2015 04:20:53 UTC-4, Colin Law wrote:
>
>
> However, all else having failed I think the only option is to use the 
> sledgehammer.  I suggest you entirely remove rvm by 
>
> rm -rf ~/.rvm* ~/.gem/ ~/.bundle 
> Some of those may not exist so don't worry if it does not find them to 
> delete. 
>
> Tell gem that we don't need to install the docs 
> echo 'gem: --no-rdoc --no-ri' > ~/.gemrc 
>
> Remove the Ubuntu version of gem if you have somehow installed it 
> sudo apt-get purge gem 
>
> Now install ruby and rails using rvm  - Note never use sudo for 
> installing rails related stuff except for installing system libraries 
> and so on with apt-get.  Otherwise you end up with things owned by 
> root and in the wrong folders. 
>
> curl -L https://get.rvm.io | bash -s stable --rails 
>
>

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