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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 hits back after Akhilesh Yadav says organising cabinet meeting at Kumbh is political

Adityanath juxtaposed the global acclaim for the Maha Kumbh with Yadav’s condemnation, portraying it as a symptom of the Samajwadi Party’s alleged long-standing opposition to significant religious symbols such as the Ram Mandir and Kashi Vishwanath Temple.

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The political atmosphere in Uttar Pradesh sizzled as Chief Minister Yogi Adityanath launched a blistering attack on Samajwadi Party leader Akhilesh Yadav, accusing him of disrespecting the Maha Kumbh and the religious sentiments of the Indian people. This sharp rebuke, delivered during a public rally in Milkipur ahead of crucial by-elections, followed Yadav’s criticism of the state government holding a cabinet meeting at the Kumbh Mela site.

Adityanath juxtaposed the global acclaim for the Maha Kumbh with Yadav’s condemnation, portraying it as a symptom of the Samajwadi Party’s alleged long-standing opposition to significant religious symbols such as the Ram Mandir and Kashi Vishwanath Temple.

He further escalated his attack, painting the Samajwadi Party as being mired in internal property disputes and insinuating connections to criminal elements, thereby attempting to discredit Yadav’s criticisms as coming from a morally compromised position.

Yadav’s initial criticism focused on the perceived impropriety of holding a cabinet meeting within the sacred space of the Kumbh Mela. He argued that the government was inappropriately using a religious event for political purposes, a charge that Adityanath vehemently rejected.

The Uttar Pradesh cabinet meeting itself was significant. All 54 ministers attended, approving numerous development schemes designed to boost Prayagraj and the surrounding region.

A key announcement involved extending the Ganga Expressway, a crucial infrastructure project designed to connect Prayagraj, Mirzapur, Bhadohi, Kashi, Chandauli, and ultimately, the Purvanchal Expressway in Ghazipur. This ambitious project, Adityanath claimed, would significantly contribute to sustainable development in the region.

Logistical adjustments were made to minimize disruption to the Kumbh Mela pilgrims. The cabinet meeting’s venue was shifted from the Mela Authority Auditorium to the Triveni Sankul in Arail to avoid inconveniencing devotees and managing the security arrangements for the VIP attendees.

The day concluded with Adityanath and his entire cabinet participating in the Kumbh Mela’s sacred rituals, taking a ceremonial dip in the Triveni Sangam. This highly publicized event, mirroring a similar participation in 2019, served as a powerful visual counterpoint to Yadav’s earlier criticism. The event simultaneously showcased the government’s commitment to religious traditions while promoting its developmental agenda.

The clash between Adityanath and Yadav underscores the deep political divisions and the strategic use of religious symbolism in Uttar Pradesh’s political landscape. The Maha Kumbh, a significant religious event, became a battleground for political point-scoring, highlighting the complex interplay between religion and politics in the state.

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Delhi Assembly elections: BJP promises free education and student aid, AAP raises concerns

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Arvind Kejriwal addressing media after writing to RSS chief Mohan Bhagwat on BJP’s alleged electoral misconduct

As Delhi gears up for the upcoming assembly elections on February 5, the Bharatiya Janata Party (BJP) released the second installment of its election manifesto, promising comprehensive solutions to citizen issues and tackling misgovernance and corruption allegations against the incumbent Aam Aadmi Party (AAP).

The manifesto, dubbed ‘sankalp patra,’ includes significant pledges such as free education from pre-school to postgraduate levels for needy students at government institutions, and a financial package comprising Rs 15,000 and travel reimbursements for young individuals taking entrance exams. Scheduled Caste students enrolled in technical and professional courses are also promised a monthly stipend of Rs 1,000.

Building on their first manifesto which targeted women voters, the BJP’s latest promises focus on the youth, with over 1.5 lakh set to benefit from a new skills training program. This release follows criticisms by AAP of the BJP’s approach, especially after the tragic incident last July where three civil service aspirants lost their lives due to flooding.

Anurag Thakur, former Union Minister, emphasized the ‘Modi ki guarantee’ assurance, stating these initiatives would be implemented swiftly if the BJP is elected. The manifesto also includes welfare measures for domestic workers and insurance schemes for auto-rickshaw and taxi drivers, who have traditionally been a strong support base for AAP.

In response, AAP leader Arvind Kejriwal critiqued the BJP’s plans, particularly highlighting a clause that, according to him, would limit free education to only “eligible” children, deviating from AAP’s policy of universal free education. Kejriwal also recalled BJP’s earlier statement on discontinuing free healthcare, framing these promises as a threat to the financial stability of Delhi’s households.

The AAP’s counter-campaign warns voters that electing BJP could lead to increased living costs and bureaucratic hurdles in accessing education and healthcare, urging the electorate to consider these factors carefully. With the election results due on February 8, both parties continue to vie for public favor through promises aimed at key demographics.

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Uttarakhand State cabinet approves uniform civil code manual, dates for rollout soon

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Pushkar Singh Dhami

In a significant step toward legal reform, the Uttarakhand Cabinet, led by Chief Minister Pushkar Singh Dhami, has approved the manual for the implementation of the Uniform Civil Code (UCC). The approval came during a Cabinet meeting held at the state secretariat on Monday. The dates for the rollout of the UCC will be announced soon.

This decision follows partial amendments made to the rules previously drafted for the UCC’s implementation. The amendments were thoroughly examined and finalised with input from the Law Department, with the Cabinet’s discussion focusing on the smooth execution of the law.

Post-meeting, Chief Minister Dhami expressed his satisfaction with the progress, underlining the government’s commitment to fulfilling a key electoral promise. “We had assured the people of Uttarakhand during the 2022 elections that the UCC would be implemented promptly once our government came to power. With the draft committee’s work complete, we are now closer to fulfilling that promise,” Dhami stated.

Uttarakhand’s implementation of the UCC will make it the first state in India to adopt a comprehensive civil law framework for all religious communities. The UCC aims to standardize laws in areas such as marriage, divorce, inheritance, adoption, and maintenance. While India already has a Uniform Criminal Code, a unified civil law has not existed until now.

The UCC will explicitly exclude tribal communities and prohibit practices such as ‘halala’, ‘iddat’, and ‘talaq’, which are part of Muslim Personal Law. The law itself consists of 392 sections and is divided into seven schedules. The comprehensive 750-page draft, which spans four volumes, was prepared by a five-member expert committee formed in June 2022 to examine the feasibility of introducing the UCC in Uttarakhand.

Led by Retired Justice Ranjana Prakash Desai, the committee submitted the final draft to the state government on February 2, 2024. The draft received approval from the state Cabinet on February 4, followed by ratification by the state Assembly during a special session. Governor Lt. Gen Gurmit Singh (Retd) gave the green light on February 28, marking the UCC’s passage into law, a move hailed as a historic milestone in Indian legal history.

While the implementation dates are yet to be finalized, the Cabinet’s approval signals that Uttarakhand is poised to set a significant legal precedent in India.

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