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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.

India News

Air India crash: Supreme Court says can’t blame pilot, seeks answers on probable causes

The Supreme Court observed that the late Air India pilot could not be blamed for the Ahmedabad crash that killed 260 people, as technical theories point to a possible electrical fault.

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The Supreme Court on Friday told the father of Air India’s late pilot-in-command, Captain Sumeet Sabharwal, that his son could not be held responsible for the tragic Ahmedabad Dreamliner crash that killed 260 people in June. The court issued notices to the Centre, the Directorate General of Civil Aviation (DGCA), and the Aircraft Accident Investigation Bureau (AAIB), seeking a detailed explanation on the causes of the disaster.

Justice Surya Kant, hearing the petition filed by 91-year-old Pushkaraj Sabharwal, said, “This crash was extremely unfortunate, but you should not carry this burden that your son is being blamed.”

Theories point to electrical malfunction

The AAIB’s preliminary report in July stated that fuel supply to both engines was cut off shortly after takeoff when the two fuel control switches were moved to “cutoff” position one after another. Though they were turned back on about ten seconds later, both engines had already flamed out, leading to the crash.

Aviation experts have since suggested that an electrical short circuit caused by water ingress might have triggered an automated system shutdown of the fuel supply, which left the aircraft with no time or altitude to recover once the engines restarted.

Multiple theories under scrutiny

One theory suggests possible manual action by a pilot, as the cockpit voice recorder captured one pilot asking the other, “Why did you cut off?” and the reply, “I did not do so.” However, the US Federal Aviation Administration ruled out mechanical faults with Boeing’s fuel control units.

Another analysis by aviation expert Richard Godfrey indicated that “water ingress to the Aft E/E Bay” disrupted the digital link between the aircraft’s main computer and the engine controls, prompting an automatic idle shutdown as a protective measure.

The Federation of Indian Pilots has urged the government to inspect all Boeing 787 aircraft in India for potential electrical issues.

Call for transparency

With several international agencies involved in the investigation, experts emphasize the need for the AAIB to release a comprehensive and transparent final report soon. The Supreme Court’s remarks have reignited demands for an independent judicial inquiry into the cause of one of India’s most tragic aviation disasters.

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Azam Khan meets Akhilesh Yadav, calls it a message of resilience and justice

Azam Khan met Akhilesh Yadav in Lucknow, calling their meeting a symbol of resilience and political justice, while recalling past injustices and the need for change

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Samajwadi Party veteran Azam Khan met party president Akhilesh Yadav in Lucknow on Friday, describing the meeting as a symbolic gesture of resilience and a call for justice and political change in Uttar Pradesh.

Speaking to reporters after the meeting, Khan said, “The real intent of our meeting was to show that despite the oppression and historic injustice we faced, there still exist people whose endurance is stronger than stone or mountain.”

Accompanied by his son and former MLA Abdullah Azam, Khan noted that many of their supporters were still imprisoned. “When we meet, we remind each other of those painful times so that future generations remember that such injustice once took place,” he said.

Azam Khan recalls ‘injustice’ and misuse of agencies

Recently released after nearly two years in jail on multiple charges, including land grabbing and intimidation, Khan expressed gratitude to the media for what he termed a “change of perception.”

“Those who once misunderstood me now seem to realise that great injustice was done to us,” he remarked. He also recounted the Income Tax raids at his residence and Rampur’s Jauhar University, saying officials “used words that could make any decent person bow his head in shame.”

Khan urged for an end to the misuse of investigative agencies and said, “Until the political system improves and people understand what is truly happening, injustice will continue. But I sense change. Those who once opposed me now come to meet me, embrace me, and weep. That is a sign of transformation.”

Rejecting rumours that the Lucknow visit was linked to legal matters, Khan clarified, “There is no other reason. I came to meet Akhilesh Yadav and to send a message through you that we stand for change.”

A renewed bond within the Samajwadi Party

This meeting marks the second significant interaction between the two leaders in a month. On October 8, Akhilesh Yadav had visited Rampur, calling Khan a “strong pillar” of the Samajwadi Party and assuring that a future SP government would withdraw all false cases against him.

Azam Khan, a founding member of the Samajwadi Party and one of its senior-most leaders, has been a close aide of the late Mulayam Singh Yadav. Despite past speculation about a rift, Khan has consistently rejected any possibility of leaving the party.

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PM Modi says Bihar’s record turnout reflects trust in NDA

Prime Minister Narendra Modi praised Bihar’s record turnout in the first phase of elections, calling it a sign of growing trust in the NDA and cautioning voters against the Mahagathbandhan’s promises.

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Prime Minister Narendra Modi lauded the people of Bihar for turning out in record numbers during the first phase of assembly elections, calling it a clear reflection of their faith in the BJP-led NDA government at both state and central levels. Speaking at a rally in Aurangabad, he highlighted the 64.66% voter turnout as the highest ever since Independence.

Bihar’s trust in double-engine growth, says PM

Addressing a massive gathering, PM Modi said, “People of Bihar have broken all records. Close to 65% of voting took place in the first phase. This shows that the youth, farmers, and women of Bihar are coming forward to bless the BJP-led NDA.”
He praised Chief Minister Nitish Kumar’s leadership for transforming the state and freeing regions like Aurangabad from years of Naxal violence. “This region was long afflicted with Maoist terror. After ‘Sushashan’ came under Nitish Kumar, the fear vanished, and people began to live freely again,” he added.

‘Fake promises’ warning to voters

The Prime Minister also cautioned voters against “fake promises” made by the opposition Mahagathbandhan, remarking that their return would mean “the comeback of katta sarkar.” He reminded the crowd of the BJP government’s record in fulfilling promises—from the construction of the Ram Mandir and abrogation of Article 370 to implementing the One Rank One Pension scheme for the armed forces.
PM Modi also referred to his past vow to avenge terror attacks, stating, “Didn’t our forces punish the perpetrators of Pahalgam attacks? Didn’t they retaliate against their wicked designs?”

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