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Rafale deal: Cong calls Modi middleman for ‘Double A’ after French report of tax relief to him

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Rafale Deal

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The on-going Rafale deal controversy was revived afresh, this time from France where Le Monde newspaper reported that Anil Ambani’s French-registered telecom company was given tax waivers worth 143.7 million euros by local authorities, shortly after the announcement by Prime Minister Narendra Modi to buy 36 Rafale jets in fly away condition.

According to the newspaper, Ambani’s telecom company “Reliance Atlantic Flag France” was investigated by French tax authorities and found liable to pay 60 million euros between 2007 and 2010.

In an attempt to reach a settlement, Reliance had offered to pay 7.6 million euros, which was rejected by the authorities and upon further investigation for the period 2010 to 2012 an additional tax of 91 million euros was levied.

During a visit to Paris in April 2015, Prime Minister Narendra Modi made a surprise announcement for direct purchase of 36 Rafale jets in fly away condition in April 2014 citing “critical operational necessity” of IAF.

Soon after the announcement, Anil Ambani’s Reliance Defence had emerged as the lead offset partner for the deal. The total offsets for the deal worth 7.87 bn euro to be discharged in India were valued at Rs 30,000 crore.

In late April 2015, a few days after Modi’s announcement, Anil Ambani firm Reliance Aerostructures Limited formed a joint venture with Dassault. The production unit of the joint venture, called Dassault Reliance Aviation Limited was inaugurated in Nagpur in 2016 in the presence of top Indian and French ministers, reported The Indian Express (IE).

By this time the tax liability on Reliance had mounted to at least 151 million euros according to Le Monde. However, six months after the announcement, French tax authorities made a settlement for 7.3 million euros instead of 151 million euros, less than even 7.6 million euros that Relaince had initially offered.

Thus, between February and October 2015 as India and France began negotiations on the deal for the 36 jets, Ambani got a tax waiver of 143.7 million euros from the French.

The MoU for the deal was signed between the Indian and French defence ministers in Delhi on January 25, 2016 and on September 23, 2016, India and France signed a 7.87 billion euro Inter-Governmental Agreement (IGA) which has a 50% offset clause to be executed by the French partners.

Dassault Aviation, the manufacturer of Rafale jets, chose Anil Ambani’s Reliance as an offset partner to execute its share of offset obligations. There have been questions on this selection as Reliance has no experience in the defence sector.

In a series of revelations, The Hindu detailed how the Prime Minister’s Office (PMO) ran parallel negotiations in the deal giving French companies a range of concessions from the defence procurement procedure in the Rafale deal.

Last year, Francois Hollande who was the French President when the announcement on Rafale was made in 2015, told a French news outlet, Mediapart.fr that his government didn’t have “a choice” in the selection of Reliance Defence as the offset partner in the Rafale deal.

The Indian Express has also reported that Anil Ambani had met the advisors to the then French Defence Minister in his office two weeks before the Rafale deal was announced by PM Modi. Dassault Aviation, the French company manufacturing Rafale jets, has repeatedly claimed Reliance Defence was chosen as an offset partner on its own merits.

In its report about tax relief to Reliance, Le Monde reported that in early 2015, the French auditor firm AEG France had refused to certify Reliance Flag Atlantic France’s accounts as it was not sure if they were “straightforward and accurate,” according to French rules.

The tax administration had argued that Ambani’s company was “improperly documenting its transactions with other companies within the Reliance Group – a commonly used technique to move transfers to tax havens so that it can avoid a tax burden”. It also said that the parent company of the French company of Anil Ambani, Reliance Globalcom Limited, was domiciled in Bermuda, a territory that has been registered in March on a blacklist of tax havens of the European Union.

 

Response of Reliance Communication

Responding to the Le Monde story, Reliance Communications in a statement said the case pertains to 2008 and denied any “favouritism or gain” from settlement, according to media reports.

The statement said that it “denies any favouritism or gain from settlement. Reliance Flag settled disputes as per legal framework in France available to all companies operating in France”.

 

A Reliance Communications Limited spokesperson said Reliance FLAG Atlantic France SAS is a subsidiary of Reliance Communications, India and that FLAG France owns a terrestrial cable network and other telecom infrastructure in France, reported IE.

“During the period under consideration by the French Tax Authorities—2008-2012—i.e. nearly 10 years ago, Flag France had an operating loss of Rs 20 crore (i.e. Euro 2.7 million). French tax authorities had raised a tax demand of over Rs 1,100 crore for the same period. As per the French tax settlement process as per law, a mutual settlement agreement was signed to pay ₹56 crore as a final settlement,” IE reported the spokesperson as having said.

 

Congress accuses Modi of acting as Anil Ambani’s midddleman

The Congress got fresh fodder to attack the Prime Minister over the Rafale issue after French newspaper Le Monde report.

“PM Modi is acting as middle man for Anil Ambani. How many other companies in France have got a tax benefit? Is this not a quid pro quo for the purchase of aircraft? It is clear ek hi chowkidar chor hai (Only one watchman is the thief),” Congress spokesperson Randeep Surjewala said.

Using the BJP’s campaign slogan to take a jibe at the party, Surjewala also said corruption in the multi-crore deal was made possible due to Modi’s patronage. “Modi hai to mumkin hai,” he said.

Citing the Le Monde report, Surjewala said layers of corruption and money trail have been unveiled in Rafale saga and cited a timeline of events to buttress his claim.

“On March 23, 2015, Anil Ambani met French defence officials. Till then the contract to build 128 Rafale was with HAL. On April 10, 2015, PM Modi discards the old Rafale deal and announces a new deal worth €7.8billion,” Surjewala said.

The Congress leader said after PM Modi announced the new Rafale deal, France cancelled the tax recovery worth 143.7 million euros of a company belonging to Anil Ambani.

“Between 2007-2010, France demands tax from Reliance Flag Atlantic France worth 60mn euros. Later, between 2010-12, 51mn euros additional tax was levied on the company. On September 21, 2018, Francois Hollande states that he was given no choice by PM Modi but to choose Anil Ambani’s company (as offset partner),” Surjewala said.

Surjewala further claimed that in 2017-18, Dassault Aviation deposited Rs 284 crore in the bank account of an inactive company Reliance Airport Developer’s Ltd. “This took place when the government of India was making advance payments to Dassault Aviation,” he said.[/vc_column_text][/vc_column][/vc_row]

2024 Lok Sabha Elections

PM Modi takes a dig at Rahul Gandhi, says Pakistan wants him as Prime Minister

PM Modi said Pakistan is eager to make the prince the Prime Minister and everyone knows that the Congress is a fan of Pakistan. The prime minister further added that the partnership between Pakistan and Congress has now been completely exposed.

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Prime Minister Narendra Modi took a veiled dig at Rahul Gandhi on Thursday. He was addressing an election rally in Gujarat’s Anand where PM Modi said, Congress is dying here and Pakistanis are crying. He further added that Pakistani leaders want to make shehzada of Congress the prime minister of India.

He said everyone should look at the coincidence that today the Congress is getting weak in India and Pakistani leaders at the same time are praying for the grand old party. PM Modi said Pakistan is eager to make the prince the Prime Minister and everyone knows that the Congress is a fan of Pakistan. The prime minister further added that the partnership between Pakistan and Congress has now been completely exposed.

A few days earlier Pakistani leader Chaudhary Fawad Hussain had shared a video on X which featured Rahul Gandhi, in which the Congress leader is seen targetting the BJP and PM Modi. In the video shared by the former Pakistan minister, rahul Gandhi can be seen attacking the BJP government over the invitees at Ram Mandir’s Pran Pratishtha ceremony.

The edited video shows Rahul Gandhi speaking about the Ram Mandir’s inauguration and charging the BJP government of sidelining the interests of the poor and youth.  PM Modi further added at the Anand rally that Congress Shahzade is dancing around with the Constitution on their foreheads. But for 75 years, this did not apply to all parts of Hindustan. The Constitution was not applicable in Kashmir, where Article 370 was like a wall that the BJP government had demolished.

The Prime Minister said it is his guarantee that he will work 24×7 to make India a developed country by 2047. He pointed out that in the last 10 years, the BJP government has given tap water connections to 14 crore houses, while the Congress gave just 3 crore houses in 60 years.

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2024 Lok Sabha Elections

Farooq Abdullah accuses PM Modi of trying to divide the country over religion

Faroukh Abdullah reacted to PM Modi’s remark that the Congress will redistribute people’s money and property to Muslims if voted to power and said Muslims respect all religions. He said that they are Muslims and Allah has told them to respect other religions. He further added that a Muslim cannot snatch anyone’s right.

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Farooq Abdullah, Jammu and Kashmir’s National Conference President said on Wednesday that Prime Minister Narendra Modi was trying to divide the country over religion. He also said that those who will vote for them must prepare for hell. Farooq Abdullah said Muslims cannot snatch away the rights of others.

Farooq Abdullah also called Prime Minister Narendra Modi-led government a threat to the survival of the country. Omar Abdullah, former Jammu and Kashmir chief minister cautioned the people not to divide this country on the basis of religion, otherwise a storm will unleash making the survival of the nation difficult. He said it is better to talk about uniting the country, instead of dividing its people.

He was addressing an election rally in Thanamandi area of the Rajouri district in Jammu and Kashmir. The Anantnag parliamentary constituency will go for elections on May 25. Faroukh Abdullah reacted to PM Modi’s remark that the Congress will redistribute people’s money and property to Muslims if voted to power and said Muslims respect all religions. He said that they are Muslims and Allah has told them to respect other religions. He further added that a Muslim cannot snatch anyone’s right.

He remembered an incident when former Prime Minister Rajiv Gandhi once stopped his car in Pulwama and assured a poor Hindu woman that he would give her a mangalsutra as she could not afford it. Farooq Abdullah said those who were against the INDIA bloc are against the nation.

Prime Minister Narendra Modi had earlier sparked a controversy last month as he commented that the Congress would take away the hard-earned money of the masses and distribute them among infiltrators and those with many children.  Speaking at a rally today, the Prime Minister took a jibe at the Congress and said the governments in the past were not able to implement the Indian Constitution in Jammu and Kashmir. He was referring to the revocation of Article 370.

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Amit Shah says BJP will neither remove reservation for SCs, STs and OBC, nor will allow Congress to do so

The Home Minister alleged that the Congress’ formula was to speak lies loudly, publicly and repetitively. He advised Congress president Mallikarjun Kharge not to speak lies for a family as eventually he will have to take the blame for the party’s loss in the Lok Sabha elections

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Union Home Minister Amit Shah on Wednesday continued to attack Congress over reservation row. He was addressing a rally in Katghora town of Chhattisgarh’s Korba district to campaign for Saroj Pandey, BJP candidate from the Korba Lok Sabha seat where Shah said BJP will neither remove reservation for SCs, STs and OBCs, nor will it allow Congress to do so.

The Home Minister alleged that the Congress’ formula was to speak lies loudly, publicly and repetitively. He advised Congress president Mallikarjun Kharge not to speak lies for a family as eventually he will have to take the blame for the party’s loss in the Lok Sabha elections. Shah accused Congress of nurturing terrorism and Naxalism to win the Lok Sabha elections.

Shah further added that Congress claims if Prime Minister Narendra Modi ji gets majority for the third term, he will scrap reservation. He said the grand old party has even circulated his fake video. Shah said that have been in power for the last 10 years and PM Modi did not remove reservation, nor will he do it in the future.

The Union Home Minister further asserted Modi ji used the majority to scrap Article 370 and triple talaq, construction of Ram Mandir in Ayodhya and introduce the Citizenship Amendment Act. He further told the Congress President Mallikarjun Kharge that Rahul Gandhi and Priyanka Gandhi do not belong to anyone. He said on June 4 Congress will suffer defeat and the brother-sister duo will remain safe, but Kharge ji will be blamed.

Shah further asserted if PM Modi becomes the prime minister for the 3rd straight term, then Naxalism will be uprooted in two years in Chhattisgarh.  Shah targeted the previous Bhupesh Baghel-led government in Chhattisgarh and said, The Bhupesh Kakka government encouraged Naxalism, but after the BJP came to power in the state under CM Vishnu Deo Sai and Deputy Chief Minister Vijay Sharma 95 Naxalites have been eliminated in 4 months.

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