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Rafale deal: Congress launches fresh attack, alleges crony capitalism to favour Reliance

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Rafale deal

The Congress on Friday came out with a fresh set of papers accusing the Modi government of deceiving the country and saying that Defence Minister Nirmala Sitharaman “misled” the nation on the Rafale fighter aircraft deal.

The Congress focused on award of offset contract to Reliance Defence Ltd and alleged that something was amiss in grant of the contract.

Although the offset contract given to the Dassault Reliance Aerospace Limited – a joint venture between RDL and Dassault – is worth Rs 30,000 crore, the Congress released RIL’s papers which claimed that “a consequent Lifecycle Cost Contract” of Rs 1 lakh crore was also awarded to it.

Congress president Rahul Gandhi tweeted on Friday evening, “Dear Trolls, I apologise for my earlier tweet in which I stated Mr 56’s friend’s JV, received 4 Billion US$’s of “offset” contracts. I forgot to add the 16 Billion US$ RAFALE “lifecycle” contract. 20 BILLION US$, is the actual benefit. So Sorry!! #130000CroreRafaleScam”

AICC communication department head Randeep Surjewala said, “What is surprising is that one of the biggest defence offset contracts went to a company, Reliance Defence Ltd Reliance Defence was incorporated on March 28, 2015, just 12 days before the announcement of purchase of 36 Rafale aircrafts by PM in France on 10th April, 2015. The company Reliance Defence Ltd. did not have the license to manufacture fighter aircrafts at that time.”

Surjewala placed records of the ministry of corporate affairs, RIL’s press releases and company records to make his point that the Modi government had gifted the Anil Ambani-owned company a huge defence contract despite the fact that it neither had any industry experience nor any required assets, said a report in The Wire.

He highlighted a separate contract around the same time of the Rafale deal in which RDL’s sister company, Reliance Aerostructure Ltd benefitted. “Another subsidiary of RIL, Reliance Aerostructure Ltd (RAL), was given the license to manufacture fighter aircraft in 2016 around the same time when RDL got the offset contract in the Rafale deal.”

Surjewala claimed that RAL, which was “given the industrial licence to manufacture fighter aircraft” on February 22, 2016, did not own any land or building when it applied for the licence, reported The Indian Express (IE).

“In its licence application for manufacturing fighter aircraft, Reliance Aerostructure Ltd has given its address and location as ‘Survey No. 589, Taluka Jafrabad, Village Lunsapur, District Amreli, Gujarat’. At that time, these premises were not owned by Reliance Aerostructure. The address belonged to Pipavav Defence and Offshore Engineering Co Ltd,” the Congress leader was quoted by IE as saying.

Surjewala said 2015-16 annual report of the Reliance Group itself says that “acquisition of Pipavav Defence and Offshore Engineering Co. was successfully completed in January 2016.”

“Even on the date of license i.e 22.02.2016, Reliance Aerostructure Ltd. did not own the land or building at the aforesaid address. It was Reliance Defence Ltd. that acquired the company only on 18.01.2016 and name was then changed to Reliance Defence and Engineering Limited,” Surjewala was quoted as saying by The Wire.

He cited the company’s annual report 2015-16, page number 5 to substantiate his allegation. Similarly, he said even RAL was allotted 104 acres in Mihan SEZ, Nagpur, Maharashtra on 28 August 2015 for around Rs 63 crore, which was paid only in July, 2017. “So when the RAL was awarded the license to manufacture fighter aircrafts, it technically had no assets of its own. Is the Modi government serious about our country’s security?”

Surjewala also alleged that there were discrepancies in the Defence Ministry’s statement and the annual report of Dassault Aviation. The defence ministry’s statement issued on February 7, 2018 claimed “no Indian offset partner for the 2016 deal for 36 Rafale aircraft has been selected by the vendor [DA]”

But, the 2016 annual report of Dassault Aviation clearly stated Anil Ambani-led Reliance Group will “manage its offsets provided for in the country by the Make in India initiative”.

The Congress further alleged that on February 16, 2017, a press release from Reliance Defence Ltd., the joint venture partner, put the value of the deal at €7.87 billion, or approximately Rs. 60,000 crore, despite the Modi government claiming it cannot disclose it owing to a secrecy clause.

He also quoted a “investor presentation” slide of Reliance Infrastructure which talks about the joint-venture with Dassault Aviation. It talks about the offset contract worth Rs 30,000 crore, and that “life cycle opportunity (is) estimated at Rs 1 lakh crore over 50 years”.

Targeting defence minister Nirmala Sitharaman, Surjewala said that the ministry of defence had issued a press release on February, 7, 2018, which said, “…no Indian Offset Partner for the 2016 deal for 36 Rafale Aircrafts has been so far selected by the vendor (Dassault Aviation) because as per the applicable guidelines, Dassault Aviation is free to select the Indian Offset Partners and provide their details at the time of seeking offset credits, or one year prior to discharge of offset obligation”.

However, he said that RIL had issued a press release a year earlier on February 16, 2017, to announce that it had secured the offset contract in the Rafale deal. “Even Dassault Aviation in its Annual Report 2016-17 has claimed that ‘offset contract’ is being executed by Reliance.” Surjewala said.

Surjewala asked, “The simple question is, who is lying: the Defence Minister or Reliance/Dassault Aviation?”

He further said that if Dassault was free to choose its offset partner, as the defence ministry claims, it would be a clear violation of guidelines in such matters.

He said that the Defence Offset Contract Guidelines issued by the Defence Offset Management Wing (DOMW) of the Defence Ministry stipulates that all offset proposals will be approved by Defence Minister and approved by the Acquisition Manager. The guidelines, he said, also says the vender will submit six-monthly reports and that an officer of DOMW may conduct an audit to verify the actual status of implementation.

“The defence offset guideline warrant and mandate that every offset contract has to be approved by the Defence Minister. Did she approve it? If she did not approve it, how did she permit Dassault Aviation to handover the contract to a private company superseding a Government company? It only shows that the national interest was being compromised by the Prime Minister and Defence Minister of India,” he said.

The Congress alleged that the Modi government cancelled the UPA government’s deal that mandated government-owned Hindustan Aeronautics Ltd. only to suit a private company.

“The culture of crony capitalism is the DNA of the Modi government. It is truer than ever in case of the Rs. 60,145 crore Rafale deal …. Does the Prime Minister represent the interest of private companies and private industrial houses or is his duty and obligation to protect an existing signed contract between an experienced government company,” asked Surjewala.

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BJP’s Punjab outreach faces fresh challenge as farmers return to Shambhu border

The BJP’s push to shift Punjab’s political focus towards development has encountered a fresh challenge as farmers resume protests at the Shambhu border over concerns surrounding the proposed India-US trade agreement.

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Prime Minister Narendra Modi’s recent visit to Punjab had signalled what many viewed as a fresh political outreach by the Bharatiya Janata Party (BJP) in a state where it has struggled to recover from the fallout of the 2020-21 farm laws protest. However, the return of farmers to the Shambhu border over concerns surrounding the proposed India-US trade agreement has once again brought agrarian issues to the forefront.

Thousands of farmers gathered at the Punjab-Haryana border, while Haryana Police stopped them from marching towards Delhi. The scenes have drawn comparisons with both the 2020-21 farm laws protest and the farmers’ agitation witnessed in 2024.

BJP’s development narrative faces disruption

During his recent Punjab visit, Prime Minister Modi focused on development, infrastructure and investment, signalling the BJP’s intention to shift political discussions away from the farm laws controversy ahead of the Assembly elections, which are expected in about six months.

His decision to wear a green turban, a colour closely associated with Punjab’s farming community, was widely viewed as a symbolic gesture aimed at reaching out to rural voters.

However, the ongoing protest over the proposed India-US trade agreement has interrupted that narrative, with farmers once again mobilising at the Shambhu border.

Concerns over proposed India-US trade agreement

Farmer organisations have expressed concern that lower import duties under the proposed India-US trade agreement could allow heavily subsidised American agricultural and dairy products to enter the Indian market. They argue this could reduce domestic prices and negatively impact farmers’ incomes.

The groups have also maintained that waiting until the agreement is finalised would leave little opportunity to safeguard farmers’ interests.

Punjab BJP president Kewal Singh Dhillon has appealed to farmers not to draw conclusions before the agreement is finalised. He said no final pact has been signed and asserted there would be “no compromise on the interests of farmers and livestock rearers”. He also said Prime Minister Modi has assured that Punjab’s farmers would not be adversely affected.

Opposition steps up attack

The issue has quickly become a political flashpoint in Punjab.

The Congress has launched a campaign against the proposed trade agreement, alleging it could adversely affect the state’s agriculture and dairy sectors.

The Aam Aadmi Party has described the proposed pact as the “biggest betrayal of farmers” and has demanded that the Centre make the draft agreement public.

The Shiromani Akali Dal has also extended support to the agitation, accusing the Centre of ignoring the concerns of Punjab’s farming community.

Political implications ahead of Punjab polls

The BJP has been attempting to broaden its support beyond its traditional urban voter base by expanding its presence in rural Punjab ahead of the Assembly elections.

Political observers had viewed Prime Minister Modi’s recent visit as the beginning of that outreach. However, the renewed farmers’ mobilisation risks reviving memories of the 2020-21 farm laws agitation, which had significantly affected the BJP’s standing among many farmers in the state.

Unlike the earlier movement, which centred on domestic agricultural reforms, the current agitation focuses on a proposed international trade agreement. If the movement gathers further momentum, it could become India’s first large-scale farmers’ protest against a foreign trade pact, bringing renewed attention to how political parties balance international trade objectives with the interests of domestic agriculture.

With Assembly elections approaching, the renewed agitation has the potential to once again make farmers’ concerns a central issue in Punjab’s political discourse.

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CJP warns of fresh protest if cases against students not withdrawn by Tuesday

The Cockroach Janta Party has threatened to resume protests if cases against students are not withdrawn, alleging the Centre violated assurances made during recent talks.

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The Cockroach Janta Party (CJP) has warned that it will resume protests from Tuesday if the Centre does not withdraw cases filed against demonstrators and stop further police action against students involved in the nationwide agitation.

The Abhijeet Dipke-led movement, which began as a satirical campaign and later evolved into a nationwide protest over alleged examination irregularities, had ended its 37-day sit-in at Delhi’s Jantar Mantar over the weekend following discussions with the government.

According to the organisation, the protest was withdrawn in “good faith” after Education Minister Dharmendra Pradhan resigned, one of the group’s key demands.

CJP alleges breach of assurances

CJP spokesperson Ashutosh Ranka alleged that authorities had failed to honour assurances made during negotiations by continuing police action against protesters.

In a post on X, he claimed that hundreds of students had been arrested in Bihar and West Bengal, while volunteers and protesters in Delhi and other states were facing surveillance and harassment.

Ranka urged senior ministers JP Nadda and Jitendra Singh, who represented the government during the talks, to ensure that all FIRs registered against protesters are withdrawn and that no fresh cases are filed by Delhi Police, central investigative agencies or police forces in BJP-allied states.

He also sought a written copy of the understanding reached during the negotiations regarding legal action against protesters.

Demands raised after talks with Centre

Following the third round of discussions held at the Constitution Club on Saturday, the CJP had said the Centre agreed to provide suitable compensation to the families of NEET aspirants who died by suicide and assured that FIRs lodged against protesters across the country would be withdrawn.

The organisation had submitted a five-point charter of demands to the government and said another round of talks would be held after four weeks.

One of the group’s major demands was the withdrawal of FIRs registered after the July 20 ‘Chalo Sansad’ march and a commitment that no further legal action would be initiated against protesters.

Police action and Parliament debate

Several FIRs were filed following clashes during the July 20 protest near Parliament after demonstrators attempted to march from Jantar Mantar towards Parliament.

Police used tear gas and batons to disperse the crowd, leading to clashes and multiple detentions.

On Monday, the issue echoed in Parliament as Opposition members repeatedly demanded a government response over the police crackdown on protesters.

Meanwhile, despite disruptions in the House, the government introduced a Bill in the Lok Sabha proposing stricter penalties for examination paper leaks.

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India summons Ukrainian envoy after ships with Indian crew attacked in Black Sea

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India has summoned the Ukrainian Ambassador after two merchant vessels carrying Indian crew were attacked in the Black Sea, raising concerns over the safety of Indians working in the conflict zone.

The Ministry of External Affairs (MEA) described the incidents as a matter of serious concerns and conveyed India’s position directly to the Ukrainian envoy.

According to the MEA, the attacks took place amid the ongoing Russia-Ukrainian war, where commercial shipping has increasingly come under threat due to military operations. Although no deaths have been reported, several Indian seafarers were on board the affected vessels, prompting the government to seek immediate clarification from Ukraine and stress the need to ensure their safety.

During the meeting, the MEA reiterated that merchant ships engaged in commercial trade and civilian crew members must not become targets during armed conflict. India urged Ukraine to take all possible steps to prevent such incidents and to uphold international maritime law, which protects civilian shipping operating in international waters.

The ministry said it is in constant contact with Indian missions abroad, shipping companies, and maritime authorities to monitor the condition of Indian crew members. Officials have assured that diplomatic and consular assistance for the crew.

The attack have once again highlighted the dangers faced by thousands of Indian seafarers employed on international cargo vessels operating in conflict-affected regions. The continuing war has disrupted shipping routes in the Black Sea, creating risks for commercial trade and the safety of multinational crews.

The latest diplomatic move reflects India’s consistent position on the Russia-Ukraine conflict. While maintaining relations with both countries, India has repeatedly called for dialogue, a peaceful resolution to the conflict, and the protection of civilians and commercial vessels under international law.

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