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Rafale deal: Accepting Reliance was imperative and obligatory, says French report

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Rafale deal: Accepting Reliance was imperative and obligatory, says French report

On the eve of Defence Minister Nirmala Sitharaman’s visit to France and a day after Supreme Court asked Centre for details of the decision making process behind Rafale deal, a fresh storm arose over Rafale deal.

French newsportal Mediapart said it has an internal document of Dassault Aviation that says that its joint venture with Anil Ambani’s Reliance group for discharging offsets in the 36-Rafale deal was a “condition”, “imperative and obligatory” for the Rafale deal with India.

Mediapart said it had obtained an internal document which shows that Deputy Chief Executive Officer of Dassault Aviation Loïk Segalen said to his staff on May 11, 2017, during a presentation of the joint venture Dassault Reliance Aerospace Ltd (DRAL) from Nagpur: “It was imperative and obligatory for Dassault Aviation, to accept this condition, in order to obtain the export contract for Rafale from India.”

The new allegations came on a day when Defence Minister Nirmala Sitharaman was headed to France where she will visit a Dassault factory where the 36 Rafale aircraft are being manufactured for India. Sitharaman will also meet her French counterpart, Florence Parly. Sources say Dassault is likely to push for more Rafale jets to be bought by India during the Defence Minister’s three-day visit.

Dassault issued a denial in which it admitted the role of Loik Segalan, the Dassault manager who made the statement.

The statement read: “Within the framework of the September 2016 Inter-Government Agreement between France and India, Dassault Aviation has sold 36 Rafale aircraft to India. In compliance with the Indian regulations (Defence Procurement Procedure) and as frequent with such a contract, Dassault Aviation has committed to offsets in India worth 50 per cent of the value of the purchase.”

“In order to deliver some of these offsets, Dassault Aviation has decided to create a joint venture. Dassault Aviation has freely chosen to make a partnership with India’s Reliance Group. This joint venture, Dassault Reliance Aerospace Ltd (DRAL), was created February 10, 2017. Other partnerships have been signed with other companies such as BTSL, DEFSYS, Kinetic, Mahindra, Maini, SAMTEL. Other negotiations are ongoing with a hundred-odd other potential partners.”

“In compliance with French regulations, Chief Operating Officer Loïk Segalen informed, May 11, 2017, the Central Works Council of the creation of the DRAL joint-venture in order to fulfil some of the offsets commitment,” it added.

The previous Congress-led UPA government had negotiated with Dassault for 126 Rafale jets under which 18 jets were to be sent in a fly-away condition and 108 were to be assembled in India by HAL. However, the UPA could not seal the deal.

The new deal, announced by Prime Minister Narendra Modi on April 10, 2015 during his visit to Paris, led to the cancellation of the 126 aircraft deal being negotiated by the previous government and became one for purchase of 36 aircraft. The deal was signed 16 months later on September 23, 2016 in Delhi between then Defence Minister Manohar Parrikar and his French counterpart.

In this deal, Anil Ambani’s firm became Dassault’s key offset partner. As part of the offset clause, Dassault has to ensure that business worth at least half the money — Rs.30,000 crore — is generated in India. The offset obligations of the deal are to be discharged from September 2019 to September 2023, as per the contract.

Dassault has maintained that “in accordance with the policy of Make in India, Dassault Aviation has decided to make a partnership with India’s Reliance Group” and that “it is Dassault Aviation’s choice, as CEO Eric Trappier had explained in an interview”.

Segalen’s remarks back what former French President Francois Hollande, who held office when the deal for 36 Rafale aircraft was signed between India and France, had told Mediapart: “It was the Indian government that proposed this service group (Reliance), and Dassault who negotiated with Ambani. We didn’t have a choice, we took the interlocutor who was given to us.”

Hollande was responding to The Indian Express report referred to by Mediapart that Ambani’s Reliance entertainment had co-produced a French film with his partner, Julie Gayet, when India and France were negotiating the Rafale deal. “That’s why, on the other hand, this group (Reliance) did not have to give me any thanks for anything. I couldn’t even imagine that there was any connection to a film by Julie Gayet,” Hollande had said.

Hollande’s statement led to a spate of allegation and counter allegations. The opposition accused the government of ignoring the state-run defence company Hindustan Aeronautics Limited (HAL) to benefit Anil Ambani. Both the government and the industrialist have rubbished the charge.

The government had said it played “no role” and that “unnecessary controversies” were being created. Late last month, the Defence Ministry invoked “issues of conflict of interest involving persons close to the former President (Hollande)”.

The government said, “had no role in the selection of Reliance Defence as the Offset partner” and that “as per Defence Offset Guidelines, the foreign Original Equipment Manufacturer is free to select any Indian company as its offset partner”.

Ambani’s Reliance Defence became part of the offset programme of the Rs 59,000-crore Rafale deal through DRAL in which it holds a 51% stake. Dassault Aviation holds 49% stake in DRAL. In October 2017, Dassault CEO Eric Trappier had announced an investment of 100 million euros in the DRAL factory planned at Nagpur, which was scheduled to start production in 2018.

This was after Trappier and Ambani laid the foundation stone for the Nagpur factory in the presence of then French Defence Minister Florence Parly; Roads and Highways Minister Nitin Gadkari; Maharashtra CM Devendra Fadnavis and Ambassador of France to India Alexandre Ziegler.

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Manipur: Congress hits back at BJP chief Nadda’s letter to Kharge

Ramesh emphasised that Nadda’s letter is replete with inaccuracies and reiterated that the people of Manipur long for normalcy, peace, and harmony.

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The Congress on Friday lashed out at BJP president JP Nadda’s accusations that the Opposition party was promoting a politically motivated narrative concerning the situation in Manipur.

The grand old party described Nadda’s letter to Congress chief Mallikarjun Kharge as a 4D exercise, which means denial, distortion, distraction, and defamation.

Nadda, responding to Kharge’s call for President Droupadi Murmu’s intervention and his claims of the Centre’s total failure in managing the crisis, claimed that the consequences of Congress’s “abject failure” in handling local issues in Manipur during its governance are still being felt today.

Responding to Nadda, Congress General Secretary for Communications Jairam Ramesh stated, “Congress President Kharge ji wrote to the President of India on Manipur. Apparently, to counter that letter, the BJP President has now written to the Congress President.”

Ramesh emphasised that Nadda’s letter is replete with inaccuracies and reiterated that the people of Manipur long for normalcy, peace, and harmony.

He noted that they are posed with four critical questions: When will the Prime Minister visit the state? How much longer will the Chief Minister remain in office despite lacking majority support? When will a full-time Governor be appointed? And when will the Union Home Minister be held accountable for his failures in Manipur?

Nadda expressed astonishment at the Congress’s ongoing efforts to sensationalize the situation in Manipur, pointing out that Kharge appeared to overlook the fact that his party’s past government had legitimized the illegal migration of foreign militants to India, during which former Home Minister P Chidambaram had signed relevant treaties.

On Tuesday, Kharge had written to President Murmu regarding the worsening conditions in Manipur, requesting her immediate intervention to ensure that the citizens of the state can live peacefully and with dignity.

In his two-page letter, Kharge accused both the Union and Manipur state governments of “completely failing” to restore peace and normalcy over the past 18 months, resulting in a loss of public confidence in their leadership.

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Rahul Gandhi is right, Gautam Adani should be arrested: RJD president Lalu Yadav

“Rahul Gandhi is right. Adani should be arrested,” said Prasad, who is an old ally of the Congress and a staunch opponent of the BJP, to which Adani is said to be close.

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RJD president Lalu Prasad Yadav on Friday spoke in support of Congress leader Rahul Gandhi’s demand for immediate arrest of Gautam Adani, after the Industrialist was charged in the US for alleged bribery and fraud.

Gandhi, the Leader of Opposition in the Lok Sabha, said on Thursday that Gautam Adani should be arrested immediately, and his protector Madhabi Puri Buch should be investigated

The former Congress chief claimed that the recent developments vindicate his long-standing allegations against Gautam Adani. He took a sharp dig at Prime Minister Narendra Modi and alleged that Modi is protecting Adani, and is also involved in corruption. 

Yadav, the former chief minister of Bihar, was responding to queries from journalists here about Gandhi’s statement on the previous day, in the backdrop of charges of bribery and fraud against the Adani group in the US.

“Rahul Gandhi is right. Adani should be arrested,” said Prasad, who is an old ally of the Congress and a staunch opponent of the BJP, to which Adani is said to be close.

The RJD supremo, who incidentally has been convicted in several fodder scam cases and is on bail, was also asked about prospects of the INDIA bloc, of which his party is a part, in Jharkhand, where the counting of votes for assembly polls is scheduled on Saturday.

Speaking to PTI, the ailing septuagenarian replied, “I would like to remain focused on my statement that Adani must be arrested. I am not worried much about a new government (in Jharkhand) where we are already in power.” Jharkhand witnessed a straight battle between the INDIA bloc and the BJP-led NDA, which included the JD(U) headed by Nitish Kumar, Prasad’s arch-rival and the current Chief Minister of Bihar.

Addressing a press conference on Thursday, Gandhi further said that Chief Ministers have been jailed for scams of Rs 10-15 crore, but Adani, who has committed a scam of Rs 2000 crore is walking free.

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Cash for votes row: BJP leader Vinod Tawde sends legal notice to Rahul Gandhi, Mallikarjun Kharge, asks them to apologise or face defamation

The BJP leader said the allegations against him were false, baseless and made with malafide intentions.

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Cash for votes row: BJP leader Vinod Tawde sends legal notice to Rahul Gandhi, Mallikarjun Kharge, asks them to apologise or face defamation

BJP leader Vinod Tawde, accused of distributing cash to influence voters, has sent a legal notice to Congress leaders Mallikarjun Kharge, Supriya Shrinate and Rahul Gandhi over the controversy. The BJP leader has demanded their apologies or face a Rs 100-crore defamation case.

Vinod Tawde’s legal notice came after regional party Bahujan Vikas Aghadi (BVA) leader Hitendra Thakur on Tuesday accused him of distributing Rs 5 crore at a hotel in Virar in Palghar district, 60 km from Mumbai, to woo voters.

In the legal notice, the BJP leader said the allegations against him were false, baseless and made with malafide intentions. He claimed that he demanded an apology from the three Congress leaders for their remarks against him in the cash-for-votes row or he would be forced to initiate criminal proceedings against them.

Just a few hours before the Assembly Elections, a video went viral on Tuesday showing BVA workers storming into the hotel in Palghar during a meeting between Vinod Tawde and Rajan Naik, the BJP candidate from the Nalasopara seat. The BVA workers alleged that Tawde was caught red-handed with Rs 5 crore cash.

In the viral video, the BVA workers were seen taking out bundles of cash from a bag, while Tawde was sitting at a distance. The BVA workers also took pictures and videos of him on their phones. Amid these allegations, BVA leaders said that Rs 5 crore cash was distributed, an election official on Tuesday said Rs 9.93 lakh cash was recovered from the hotel rooms.

However, Vinod Tawde denied the allegation, saying he was only providing guidance to party workers on poll procedures and said he was not stupid enough to distribute money at his opponent’s hotel. Speaking to the media, he said that the Vivanta Hotel is owned by the Thakurs, and he is not stupid to go to their hotel and distribute money there.

The Police registered two FIRs against Tawde, BJP candidate Naik and others in connection with the controversy. Additionally, the Election Commission filed three FIRs against Tawde.

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