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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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Punjab Congress faction games hold up who will lead party as poll approaches

The Congress leadership is expected to finalize the new Punjab Congress chief soon as factions oppose Amarinder Singh Raja Warring continuance as chief.

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The Congress leadership is likely to decide the name of a new Punjab Pradesh Congress Comittee (PPCC) president in light of the growing factional differences emerging within the party state unit.

The decision by party president Mallikarjun Kharge on choosing the head of the state unit is likely to be finalized after he takes note of other senior leaders’ opinions on the matter, as differences over the continuation of Amarinder Singh Raja Warring as PPCC president has led to former Chief Minister Charanjit Singh Channi pitching his hat in the ring.

The leadership crisis has reflected the diverging interests of opposing factions in the Punjab Congress. Channi has the backing of several party leaders including Bharat Bhushan Ashu, Gurpreet Singh Kangar, Darshan Singh Brar, and Nazar Singh Manshahia, among other supporters of Channi, while another faction is supporting incumbent chief Warring.

The Congress needs to stem the crisis soon since the state is headed for elections next year as the term of the Bhagwant Mann-led Aam Aadmi Party government winds down. Many in the party have said that having a widely accepted state leader can strengthen the organizational structure.

The delay in decision-making has caused speculation with some senior leaders meeting BJP heavyweights in Delhi. Though these leaders have dismissed any rumours of switching sides, the strain among the factions is telling on party unity. But given the way several Rajya Sabha MPs of the Aam Aadmi Party switched to the BJP, nothing can be ruled out as election fever picks up.

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Congress MP Manish Tewari says terror must end before India-Pakistan dialogue resumes

Congress MP Manish Tewari has questioned calls to restart India-Pakistan dialogue, arguing that meaningful talks cannot resume until Pakistan takes verifiable action against terrorism.

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Congress MP says decades of peace initiatives have repeatedly been followed by terror attacks and calls for verifiable action against terrorism before any engagement

Congress MP Manish Tewari has questioned renewed calls to resume dialogue between India and Pakistan, saying any discussion with Islamabad must first address the issue of cross-border terrorism. Responding to an appeal by 117 eminent personalities from both countries seeking the restoration of diplomatic engagement, Tewari asked whether such talks could be meaningful without concrete action against terror infrastructure.

Speaking on Friday, the Congress leader said successive Indian governments had consistently attempted to improve relations with Pakistan, but those efforts were repeatedly undermined by terrorist attacks.

According to Tewari, governments led by P.V. Narasimha Rao, H.D. Deve Gowda, I.K. Gujral, Atal Bihari Vajpayee, Manmohan Singh and Prime Minister Narendra Modi all pursued dialogue with Pakistan through formal negotiations or backchannel diplomacy. However, he claimed that each attempt was followed by acts of terrorism.

Calls for proof of dismantling terror infrastructure

Tewari said the key issue was whether Pakistan had provided any verifiable assurance that it had dismantled its terror infrastructure.

Referring to former Pakistan President Pervez Musharraf, he said a public commitment had been made after the Parliament attack to act against terrorism, but the assurance was later withdrawn. He added that similar commitments made during the tenures of former Prime Ministers Manmohan Singh and Narendra Modi also failed to produce lasting results.

Questioning the appeal for renewed engagement, Tewari said those advocating talks should clarify what specific issues they intended to discuss while the threat of terrorism remained unresolved.

References Pahalgam terror attack and Indus Waters Treaty

The Congress MP also referred to the Pahalgam terror attack in April 2025, saying it further reinforced India’s concerns regarding terrorism.

He noted that India’s position became even more firm following the attack, pointing to the suspension of the Indus Waters Treaty as part of the government’s response.

Commenting on the timing of the letter seeking renewed dialogue, Tewari said India had consistently maintained that terrorism and bilateral talks could not proceed simultaneously. He also reiterated the government’s position that it would not differentiate between terrorists and those responsible for directing such attacks.

Peace remains desirable, but security comes first

While acknowledging that millions of people across South Asia aspire for lasting peace, Tewari argued that meaningful dialogue was not possible as long as terrorism remained a continuing threat.

He said India must first receive credible assurances from Pakistan, beginning with an end to the export of terrorism, before considering any resumption of diplomatic engagement.

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TVK alleges Rs 35 crore MLA bribery bid as Tamil Nadu political row escalates

Allegations of a Rs 35 crore bribery offer to a TVK MLA and an FIR against Senthil Balaji’s brother have intensified political tensions in Tamil Nadu, with the TVK, DMK and AIADMK trading accusations.

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The alleged attempt to destabilise the Vijay-led TVK government has triggered a major political confrontation in Tamil Nadu, with the ruling alliance and the opposition accusing each other of engaging in horse-trading and attempts to influence legislators.

The controversy intensified after Chennai Police arrested three people on Wednesday following a complaint by a TVK MLA, who alleged that he was offered ₹35 crore by representatives of a consultancy firm in exchange for supporting a move against the Assembly Speaker. According to the allegations, one of those arrested is reportedly associated with DMK MLA Senthil Balaji and his brother, Ashok.

An FIR has also been registered against Ashok, the brother of Senthil Balaji, over allegations that he attempted to bribe TVK MLA N. Elaiyaraja.

TVK accuses DMK of targeting its MLAs

TVK alleged that the DMK has been attempting to lure its legislators for several weeks in an effort to destabilise the government.

Tamil Nadu minister and senior TVK leader CTR Nirmal Kumar claimed that several TVK MLAs, along with legislators from alliance partners, had been approached over the past 40 days. He alleged that the party had now been “caught red-handed” after the police action and accused the DMK of trying to purchase the support of a TVK MLA for ₹35 crore.

Nirmal Kumar also alleged that a close associate of Senthil Balaji had threatened a TVK legislator and further claimed that former chief minister MK Stalin and Leader of Opposition Udhayanidhi were attempting to create a political crisis. He rejected allegations that the TVK itself was involved in horse-trading, asserting that the ruling alliance remained secure with the support of its partners.

According to the allegations cited by agencies, the purported plan involved securing the simultaneous resignation of 15 TVK MLAs to bring down the Vijay-led government.

Opposition rejects allegations

The DMK dismissed the accusations, alleging that the Vijay-led government was trying to divert attention from its own shortcomings.

DMK leader TKS Elangovan said the government had failed to fulfil its promises and claimed that the TVK alliance itself was engaged in horse-trading. He questioned the allegation that the DMK would seek to engineer political instability under the present circumstances.

The AIADMK also criticised the ruling party, accusing it of attracting legislators from rival parties while questioning its commitment to public welfare. AIADMK chief Edappadi K. Palaniswami said that political manoeuvring and shifting alliances had overshadowed governance.

Alliance partners support TVK government

The TVK’s alliance partners backed the government during the controversy.

Congress MP Praveen Chakravarty questioned why the DMK was allegedly seeking to bring down the government instead of remaining in the opposition, asking why it was in such a hurry to return to power.

VCK leader SS Balaji also reiterated his party’s support for the TVK government for its full five-year term. While stating that he was not aware of the specific allegations regarding attempts to poach legislators, he said that encouraging MLAs to resign was not a healthy democratic practice and reaffirmed the alliance’s commitment to the government.

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