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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]

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Yogi Adityanath’s do namoone remark sparks Akhilesh Yadav’s jab on BJP infighting

Yogi Adityanath’s ‘do namoone’ comment in the UP Assembly has been countered by Akhilesh Yadav, who termed it a confession of BJP’s internal power struggle.

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Yogi Adityanath

Uttar Pradesh Chief Minister Yogi Adityanath’s recent “do namoone” comment in the state Assembly has triggered a sharp political exchange, with Samajwadi Party chief Akhilesh Yadav turning the remark into an attack on the Bharatiya Janata Party’s alleged internal discord.

The comment was made during a heated Assembly discussion on allegations of codeine cough syrup smuggling in Uttar Pradesh. Opposition members had accused the state government of inaction, claiming that timely steps could have saved the lives of several children. Rejecting the allegation outright, Adityanath said that no child in the state had died due to consumption of the cough syrup.

While responding to the opposition benches, the Chief Minister made an indirect jibe, saying there were “two namoone”, one in Delhi and one in Lucknow. Without naming anyone, he added that one of them leaves the country whenever there is a national debate, and suggested that a similar pattern applied to the Samajwadi Party leadership. The remark was widely interpreted as being aimed at Leader of Opposition Rahul Gandhi and Akhilesh Yadav, a former Uttar Pradesh chief minister and current Lok Sabha MP

Akhilesh Yadav calls remark a ‘confession’

Akhilesh Yadav responded swiftly on social media, calling Adityanath’s statement a “confession” that exposed an alleged power struggle within the BJP. He said that those holding constitutional posts should maintain decorum and accused the ruling party of bringing its internal disputes into the public domain. Yadav posted his response shortly after the Chief Minister shared a video clip of the Assembly remarks online.

The Samajwadi Party has, on several occasions, claimed that there is a tussle between the Uttar Pradesh government and the BJP’s central leadership. Party leaders have cited the appointment of deputy chief ministers and certain bureaucratic decisions as evidence of attempts to curtail the Chief Minister’s authority.

Adityanath has consistently dismissed these claims, maintaining that he holds the post because of the party’s trust in him. The latest exchange has once again brought the narrative of BJP infighting into political focus, even as both sides continue to trade barbs ahead of key electoral contests

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Sonia Gandhi calls weakening of MGNREGA a collective moral failure, targets Centre in op-ed

Sonia Gandhi has accused the Centre of weakening MGNREGA, calling it a collective moral failure with serious consequences for crores of working people.

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Sonia Gandhi

Congress Parliamentary Party chairperson Sonia Gandhi has sharply criticised the Central government over what she described as the steady dismantling of rights-based legislation, with a particular focus on the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

In a recent opinion article published in a leading English daily, Sonia Gandhi argued that MGNREGA was envisioned as more than a welfare measure. She said the rural employment scheme gave legal backing to the constitutional right to work and was rooted in Mahatma Gandhi’s idea of Sarvodaya, or welfare for all.

Calling its weakening a serious failure, she wrote that the decline of MGNREGA represents a “collective moral failure” that will have lasting financial and human consequences for crores of working people across India. She stressed that safeguarding such rights-based frameworks is crucial at a time when, according to her, multiple protections are under strain.

Concerns raised over education, environment and land laws

Sonia Gandhi also flagged concerns beyond rural employment. Referring to education policy, she claimed that the Right to Education has been undermined following the National Education Policy 2020, alleging that it has led to the closure of around one lakh primary schools across the country.

On environmental and land-related legislation, she stated that the Forest Rights Act, 2006, was weakened through the Forest (Conservation) Rules, 2022. According to her, these changes removed the role of the gram sabha in decisions related to the diversion of forest land.

She further alleged that the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act has been significantly diluted, while adding that the National Green Tribunal has seen its authority reduced over the years.

Warning on agriculture and food security laws

Touching upon agriculture reforms, Sonia Gandhi referred to the now-repealed three farm laws, claiming they were an attempt to deny farmers the right to a minimum support price. She also cautioned that the National Food Security Act, 2013, could face similar threats in the future.

Reiterating her central argument, she urged unity to protect statutory rights, stating that the erosion of such laws has implications that extend well beyond policy, affecting livelihoods and dignity on the ground.

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Renaming MGNREGA removes core spirit of rural employment law, says Shashi Tharoor

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Shashi Tharoor

Congress MP Shashi Tharoor has strongly criticised the renaming of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), saying the move strips the rural employment programme of its core essence. His remarks came after Parliament cleared the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, also referred to as the VB-G RAM G Bill.

Speaking to media, Tharoor said the decision to remove Mahatma Gandhi’s name from the scheme “takes out the heart” of the rural employment programme that has been in place for years. He noted that the identity and philosophy associated with Mahatma Gandhi were central to the original law.

Tharoor also objected to the way the new name was framed, arguing that it unnecessarily combined multiple languages. He pointed out that the Constitution envisages the use of one language in legislation, while the Bill’s title mixes English and Hindi terms such as “Guarantee”, “Rozgar” and “Ajeevika”, along with the conjunction “and”.

‘Disrespect to both names’

The Congress leader said that inserting the word “Ram” while dropping Mahatma Gandhi’s name amounted to disrespecting both. Referring to Mahatma Gandhi’s ideas, Tharoor said that for Gandhi, the concepts of Gram Swaraj and Ram Rajya were inseparable, and removing his name from a rural employment law went against that vision.

He added that the name of Lord Ram could be used in many contexts, but questioned the rationale behind excluding Mahatma Gandhi from a programme closely linked to his philosophy of village self-rule.

Protests over passage of the Bill

The VB-G RAM G Bill was passed by the Lok Sabha on December 18 and cleared by the Rajya Sabha in the early hours of December 19 amid protests from Opposition members. Several MPs opposed the manner in which the legislation was pushed through, with scenes of sloganeering and tearing of papers in the House.

Outside Parliament, members of the Trinamool Congress staged a sit-in protest near Samvidhan Sadan against the passage of the Bill. Congress also announced nationwide protests earlier this week, accusing the government of weakening rights-based welfare schemes.

Despite opposition criticism, the government has maintained that the new law will strengthen rural employment and livelihood security. The Bill raises the guaranteed employment from 100 days to 125 days per rural household and outlines a 60:40 cost-sharing formula between the Centre and states, with a higher central share for northeastern, Himalayan states and certain Union Territories.

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