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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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ED issues fresh summons to Lalu Prasad Yadav in land-for-jobs case

The ED has summoned RJD chief Lalu Prasad Yadav for questioning on March 19 in the land-for-jobs case. His family members have also been called for interrogation.

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Lalu Yadav

The Enforcement Directorate (ED) has issued fresh summons to Rashtriya Janata Dal (RJD) chief and former Bihar Chief Minister Lalu Prasad Yadav in connection with the land-for-jobs money laundering case. According to official sources, the 76-year-old leader has been asked to appear before the agency in Patna on March 19.

The investigation agency has also summoned some of his family members for questioning in the same case. Their statements are to be recorded under the Prevention of Money Laundering Act (PMLA), sources said.

Family members named in chargesheet

Despite the summons, sources indicate that Lalu Prasad and his family members are unlikely to appear before the ED.

Last year, the ED had filed a chargesheet in a Delhi court, naming several members of Lalu Prasad’s family, including his wife, former Bihar Chief Minister Rabri Devi, and their daughters, Misa Bharti and Hema Yadav, as accused in the case. Others were also named in the chargesheet.

The land-for-jobs scam pertains to allegations that land parcels were taken as bribes in exchange for employment in the Indian Railways when Lalu Prasad Yadav served as Railway Minister. The ED has been investigating the money laundering aspect of the case.

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Devendra Fadnavis says he will protect Aurangzeb’s grave, but won’t allow its glorification

Maharashtra CM Devendra Fadnavis says Aurangzeb’s grave will be protected under ASI rules but warns against glorification.

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Devendra Fadnavis

Maharashtra Chief Minister Devendra Fadnavis has asserted that while the state government will protect Aurangzeb’s grave in Chhatrapati Sambhaji Nagar, it will not permit any glorification of the Mughal ruler. His remarks came in response to demands from fringe outfits calling for the removal of the protected site.

Fadnavis takes a firm stance

Speaking in the state legislative assembly, Mr. Fadnavis stated, “We will protect Aurangzeb’s grave but not allow his or the site’s glorification. Chhatrapati Shivaji Maharaj’s temple will be glorified, not Aurangzeb’s grave.”

Aurangzeb is remembered in Maharashtra for his prolonged conflicts with the Marathas. His forces captured and executed Chhatrapati Shivaji Maharaj’s son, Sambhaji. The CM acknowledged the historical sensitivities surrounding the issue, adding that although the site is a protected monument under the Archaeological Survey of India (ASI), the state would not allow any attempts to celebrate Aurangzeb.

“It is unfortunate that we have to protect Aurangzeb’s tomb, but since it was declared a protected site by ASI 50 years ago, it is our responsibility. However, glorification of Aurangzeb will not be tolerated under any circumstances,” Mr. Fadnavis reiterated.

Protests and calls for removal

The debate over the grave’s existence has escalated, with organizations like Bajrang Dal and Vishwa Hindu Parishad pressing for its removal. They have warned of large-scale protests and karseva if the government does not act. BJP’s Satara MP, Udayanraje Bhosale, a descendant of Shivaji Maharaj, has also voiced support for the demand.

Previously, Mr. Fadnavis had acknowledged the demand but stated that any legal action must be taken within constitutional limits, as the site was granted protected status during a previous Congress-led government.

Controversy over Abu Azmi’s remarks

The controversy was further fueled last month when Samajwadi Party (SP) leader Abu Azmi praised Aurangzeb, calling him a “good administrator” and stating that India was known as “Sone ki Chidiya” during his reign. His remarks led to his suspension from the legislative assembly until the end of the budget session. Facing backlash, Mr. Azmi later claimed his comments were misinterpreted but maintained that his statements were based on historical records.

Maharashtra Deputy Chief Minister Eknath Shinde demanded a sedition case against Mr. Azmi, calling his comments “a great sin”. He further accused Mr. Azmi of deliberately disrespecting Shivaji Maharaj and Sambhaji Maharaj.

Opposition and political reactions

Shiv Sena (Uddhav Balasaheb Thackeray) leader Uddhav Thackeray criticized Abu Azmi’s remarks and slammed Samajwadi Party national president Akhilesh Yadav for supporting him. In response, Mr. Yadav questioned the rationale behind Mr. Azmi’s suspension, arguing that ideological biases were influencing democratic decisions.

State Congress chief Harshvardhan Sapkal accused the BJP-led government of diverting attention from pressing issues such as unemployment and farmers’ distress. He argued that removing Aurangzeb’s tomb would not address these concerns.

On Sunday, Mr. Sapkal compared CM Fadnavis to Aurangzeb, stating that both used religion to further their rule. The BJP dismissed his remarks as “childish”.

As the debate continues, the Maharashtra government remains firm on protecting the tomb while preventing any form of glorification.

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Chandrababu Naidu on language debate: Hindi useful for communication in Delhi

Andhra Pradesh CM Chandrababu Naidu stresses the importance of Hindi for communication and English for global interactions, advocating for multilingual learning.

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Chandrababu Naidu

Andhra Pradesh Chief Minister Chandrababu Naidu has weighed in on the ongoing language debate, emphasizing that languages should not be a source of hatred but a tool for communication. Addressing the matter, he underscored the importance of Hindi and English, highlighting their roles in national and international discourse.

“Hindi is the national language. English is the international language,” said Naidu, acknowledging that Indians are increasingly migrating to different countries for work and education.

Reiterating the importance of multilingual proficiency, Naidu stated, “For livelihood, we will learn any number of languages. We won’t forget our mother tongue. Language is only for communication. It is best to learn maximum languages, let us remember.”

His comments come amid a heated debate on language politics, particularly in states where the imposition of Hindi has faced opposition. While some regional parties have strongly resisted Hindi’s dominance, Naidu’s stance reflects a more balanced approach, advocating for linguistic harmony and practical communication.

His remarks particularly resonate in Delhi, where a diverse population speaks multiple languages, but Hindi serves as a common medium of communication.

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