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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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Sonia Gandhi accuses Centre of undermining MGNREGA, demands Rs 400 minimum wage, 150 workdays

Sonia Gandhi highlighted that the MGNREGA, enacted in 2005 during the UPA government under former Prime Minister Manmohan Singh, has been a vital safety net for millions of rural poor. However, she expressed deep concern over its alleged deterioration under the current administration.

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Congress leader Sonia Gandhi on Tuesday accused the BJP-led central government of systematically weakening the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), a flagship rural employment scheme. Speaking during the Zero Hour in the Rajya Sabha, she demanded an increase in the minimum wage under the scheme to ₹400 per day and an extension of guaranteed workdays from 100 to 150 per year.

Sonia Gandhi highlighted that the MGNREGA, enacted in 2005 during the UPA government under former Prime Minister Manmohan Singh, has been a vital safety net for millions of rural poor. However, she expressed deep concern over its alleged deterioration under the current administration.

“The budget allocation for MGNREGA remains stagnant at ₹86,000 crore, which is a 10-year low as a percentage of GDP. When adjusted for inflation, the effective budget has declined by ₹4,000 crore. Estimates suggest that nearly 20% of the allocated funds will be used to clear pending dues from previous years,” she stated.

She also pointed out several challenges plaguing the scheme, including the exclusionary Aadhaar-based payment system, the National Mobile Monitoring System (NMMS), persistent delays in wage payments, and wage rates that fail to keep pace with inflation. The NMMS app, which requires real-time attendance and geotagged photographs of workers, has been criticized for adding unnecessary complexity.

Sonia Gandhi called for adequate financial provisions to sustain and expand MGNREGA. She urged the government to increase the minimum wage to ₹400 per day, ensure timely disbursement of wages, and raise the number of guaranteed workdays from 100 to 150 annually.

The central government had previously increased MGNREGA wages by 3-10% in nominal terms for the financial year 2024-25, just before the general elections were announced last year. However, wages vary significantly across states, ranging from ₹237 per day in Uttarakhand to ₹300 in Andhra Pradesh.

Demanding the removal of the Aadhaar Payments Bridge System (APBS) and NMMS, Sonia Gandhi emphasized, “These measures are essential to ensure that MGNREGA provides dignified employment and financial security to rural workers.”

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India News

Nagpur violence: Fadnavis, Shinde call it a planned conspiracy amid political blame game

Maharashtra CM Devendra Fadnavis and Deputy CM Eknath Shinde claim the Nagpur riots were a pre-planned conspiracy. The opposition, however, alleges BJP’s role in inciting violence.

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Eknath Shinde Devendra Fadnavis

A curfew has been imposed in several areas of Nagpur following violent clashes that erupted on Monday night over demands to remove Mughal emperor Aurangzeb’s tomb from Maharashtra. The unrest left 33 police officers and five civilians injured, with multiple shops and vehicles set ablaze.

Maharashtra Chief Minister Devendra Fadnavis and Deputy CM Eknath Shinde have labeled the violence as a “planned conspiracy” and blamed it on deliberate misinformation. Fadnavis pointed to the large-scale stone-pelting and targeted attacks, saying, “We got a trolley of stones, indicating planning, and some specified houses and institutions were targeted.”

He added that misinformation about a religious symbol on a symbolic grave sparked the violence. “One Deputy Commissioner was attacked with an axe… those who took the law into their hands will not be spared,” he asserted.

Clashes fueled by ‘Chhava’ movie and political tensions

The controversy began when right-wing groups Vishwa Hindu Parishad and Bajrang Dal staged a protest demanding the removal of Aurangzeb’s grave. The groups symbolically burned a grave made of grass and raised slogans. This, according to authorities, led to the spread of false claims that religious texts were burned, triggering a reaction from the Muslim community.

Eknath Shinde backed Fadnavis’ claims, saying, “Patriotic Muslims will never support Aurangzeb.” He further called Aurangzeb’s tomb a “blot on Maharashtra” and accused opposition parties of inciting the violence.

Opposition alleges BJP conspiracy

Shiv Sena leader Aaditya Thackeray countered the ruling alliance’s claims, alleging that the BJP was attempting to create a “Manipur-like situation” in Maharashtra. His party colleague, Priyanka Chaturvedi, also accused the BJP of orchestrating the violence as part of a larger political agenda.

Meanwhile, Union Minister and Nagpur MP Nitin Gadkari urged people not to believe in rumors, stating, “Nagpur is known for maintaining peace. I urge my brothers not to fall for misinformation.”

Current situation in Nagpur

Heavy security has been deployed across the city, particularly near Aurangzeb’s tomb, which is under legal protection. Several houses and shops were vandalized, and multiple vehicles were torched during the riots.

Residents recounted terrifying experiences, with one, Sharad Gupta from Hansapuri, stating that a mob attacked his house around 10:30 PM, setting his two-wheelers on fire while police response was delayed.

Authorities are monitoring the situation closely, and curfew measures remain in place to prevent further escalation.

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India News

PM Modi lauds Maha Kumbh’s success, calls it a symbol of India’s unity and strength

Prime Minister Narendra Modi called Maha Kumbh 2025 a testament to India’s unity and strength while Congress criticized him for not mentioning stampede deaths in his address.

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PM Modi addressing the Lok Sabha on Maha Kumbh 2025

Prime Minister Narendra Modi, in his address to the Lok Sabha during the ongoing Budget session, hailed the successful organization of the Maha Kumbh in Prayagraj. He attributed its grandeur to the collective efforts of the people of India, especially those from Uttar Pradesh and Prayagraj.

“I bow to the countrymen whose efforts led to the successful organisation of the Maha Kumbh. The success of the Maha Kumbh is a result of countless contributions. I thank the people of India, Uttar Pradesh, and Prayagraj,” PM Modi said.

Highlighting the event as an embodiment of the nation’s diversity and unity, he remarked that differences faded away during the Maha Kumbh, underscoring India’s deep-rooted spirit of oneness.

A global spectacle of faith and devotion

PM Modi emphasized that the Maha Kumbh not only showcased India’s cultural richness but also served as a testament to its national awakening. “The entire world saw India’s grandeur in the form of Maha Kumbh. We witnessed a national awakening in the Maha Kumbh, which would inspire new achievements. This also gave a befitting reply to those who doubt our strength,” he stated.

According to official data, the Maha Kumbh, which took place from January 13 to February 26, saw a staggering participation of 66 crore devotees, nearly ten times the population of France. Over 40 crore devotees and Naga seers took a holy dip in the sacred confluence of the Ganga, Yamuna, and the mythical Saraswati at the Sangam in Prayagraj.

Congress questions omission of stampede deaths

While PM Modi focused on the success and significance of the Maha Kumbh, the Congress criticized him for not addressing the tragic stampede incidents that occurred during the event. At least 30 people lost their lives in a stampede at the fair venue, while another 18 perished due to a Kumbh-bound rush at a railway station in Delhi.

PM Modi connects Maha Kumbh with India’s cultural revival

The Prime Minister also shared that he had immersed sacred water from Sangam at the Ganga Talao in Mauritius, further emphasizing the global significance of India’s traditions. He concluded his speech by asserting that the new generation of India is embracing its heritage with pride, and events like Maha Kumbh strengthen the nation’s unity and cultural resurgence.

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