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Rafale deal: Modi govt waived anti-corruption clauses; and curious case of MoD financial advisor

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Rafale deal: Modi govt waived anti-corruption clauses; and curious case of MoD financial advisor

[vc_row][vc_column][vc_column_text]The Rafale deal affair got muddier with reports raising further questions about Narendra Modi government’s actions.

A report by The Hindu said the Indian government made major and unprecedented concessions, waiving critical provisions for anti-corruption penalties and making payments through an escrow account dropped days before the signing of the inter-governmental agreement (IGA).

Modi has been claiming to be waging a relentless war against corruption and justifying cases against political rivals on this basis.

Also significant is the fact that this and other important information on the “parallel negotiations” conducted by the Prime Minister’s Office and the National Security Adviser seems to have found been withheld from the material submitted by the government to the Supreme Court of India, The Hindu reported.

Another report in India Legal mentioned the curious case of Modi government appointing an officer from the Indian Audit and Account Services (IA&AS) as financial advisor to the Ministry of Defence (MoD). The post is traditionally reserved for Indian Defence Accounts Service (IDAS) cadres.

The IA&AS officer in question, 1984 batch’s Gargi Kaul, is sister-in-law of Supreme Court judge, Justice Sanjay Kishan Kaul who was part of the three judge bench of the apex court, also comprising Chief Justice Ranjan Gogoi and Justice KM Joseph, which had, on December 14, dismissed a bunch of petitions demanding a court-monitored investigation into alleged irregularities committed by Prime Minister Narendra Modi’s government in finalising the Rafale deal.

A day after the Supreme Court verdict, on December 15, Gargi Kaul was empanelled by the Centre at the rank of Secretary, Government of India. Ten days later, on December 24, she was transferred to MoD. Prior to her transfer, Kaul was serving as Additional Secretary and Financial Advisor to the Ministry of Civil Aviation.

While this report has not yet drawn much attention or ruffled any feathers outside IDAS, The Hindu’s report had the Congress launch a fresh attack on Modi government.

Congress chief Rahul Gandhi Monday launched a fresh salvo at Prime Minister Narendra Modi. Quoting The Hindu report, the Congress chief said, “Every defence deal has an anti-corruption clause. Reports suggest that the PM removed the anti-corruption clause. It is clear that the PM facilitated loot.” Taking to Twitter, he wrote, “NoMo anti-corruption clause. The Chowkidar himself opened the door to allow Anil Ambani to steal 30,000 Cr. from the IAF.”

The Congress said the Rafale deal is “unravelling” faster than the government thought, with issues such as “parallel negotiations” by the PMO and changes in the standard defence procurement procedure coming to the fore.

Senior Congress leader and former finance minister P Chidambaram said in a series of tweets, “First, it was the loading of the India Specific Enhancement costs on 36 aircraft instead of 126 aircraft giving a bonanza to Dassault. Then it was the revelation that ‘parallel negotiations’ were being carried on by PMO undermining the efforts of the Indian Negotiating Team.”

Now it is revealed that crucial changes were made to the clauses in the standard Defence Procurement Procedure, he said. “No sovereign guarantee, no bank guarantee, no escrow account, yet a huge amount was paid as advance,” Chidambaram alleged.

Lashing out at the Modi government, he said, “No penalty clause for undue influence, no clause against agency commission, no clause for access to suppliers’ accounts, and Dassault goes laughing all the way to the bank.”

Citing the media report, Congress’ chief spokesperson Randeep Surjewala said, “Modiji, after waiving off sovereign guarantee in Rafale deal, you also waived off the ‘anti-corruption measure’ of a ‘safeguard Escrow A/c’! What is the corruption you wanted to hide?”

The whole country is abuzz that “chowkidar chor hai”, he said.

The Congress on its official Twitter handle, asked: “Throwing all good sense to the wind, the PMO also discarded the advice to create an escrow account under the control of the French Govt to release payments from India. Instead it chose to pay Dassault upfront in advance. Who was the PMO trying to benefit?”

“After the PMO forced the waiver of a sovereign guarantee, it now turns out the PMO asked for the WAIVER of standard ANTI-CORRUPTION clauses. Who was the PMO trying to shield? There is no doubt that #ChowkidarChorHai”

The Hindu report states that the government gave “major and unprecedented concessions” to the French side when the Rafale deal was signed between the two countries. This included dropping of “critical provisions for anti-corruption penalties and making payments through an escrow account”.

According to the media report, the high-level political intervention meant that standard Defence Procurement Procedure (DPP) clauses on “Penalty for use of Undue Influence, Agents/Agency Commission, and Access to Company accounts” of Dassault Aviation and MBDA France were dropped by the Modi government.

The newspaper further cites official documents that reveal that the Defence Acquisition Council (DAC) chaired by the then Defence Minister, Manohar Parrikar, met in September 2016, and “ratified and approved” eight changes in the IGA, supply protocols, offset contracts and offset schedules. The agreement and the documents had been approved by the Cabinet Committee on Security chaired by Prime Minister Narendra Modi before that on August 24, the report adds.

The most significant among these eight changes, recorded in a note signed by Vice Admiral Ajit Kumar, DCIDS (PP&FD) who was the member-secretary of the DAC, is at sub-para (c). This states: “Non-inclusion of the Standard DPP Clauses related to ‘Penalty for Undue Influence,’ ‘Agents/Agency Commission’ and ‘Access to Company Accounts’ in the Supply Protocols.”

The Hindu further quotes a dissent note by signed by three members of the Indian Negotiating Team that said: “…it is not advisable to sacrifice the basic requirement of financial prudence.”

The Rafale deal was signed between India and France under the terms of DPP-2013. Despite the procedure stating explicitly that the Standard Contract Document “would be the guideline for all acquisitions”, the Indian government chose to remove these clauses from the supply protocols with the two private defence suppliers, the report says.

The Hindu in its report says this was significant because the government also chose to do away with a sovereign or bank guarantee from France and settled for a letter of comfort, which is not legally binding, from the French Prime Minister.

After the introduction of a letter of comfort, another proposal that was turned down was one proposed by former defence bureaucrat Sudhanshu Mohanty

This came on the back of another turned-down proposal to have an escrow account operated by the French government. The Indian government would then release money to the account and France would make further payments to the firm as per terms agreed to by both governments as per the IGA.

“This would make French Govt. morally and materially responsible for the procurement so proposed,” Mohanty is quoted as saying in a separate note reported by The Hindu.

The newspaper had earlier reported on the defence ministry’s reservations to “parallel negotiations” conducted by the PMO in the deal.

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PM Modi takes aim at critics with Dimagi Naxal remark at SRCC centenary address

PM Modi revived his dimagi Naxal remark at SRCC’s centenary celebrations and spoke about India’s development journey.

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PM Modi

Prime Minister Narendra Modi revived his ‘dimagi Naxal’ remark while addressing the centenary celebrations of Shri Ram College of Commerce (SRCC) in Delhi on Saturday, using the term to criticise his opponents.

Speaking to students at the Delhi college, PM Modi described the phrase as a “homeopathic pill” and said it had prompted those he described as “dimagi Naxals” to come forward and reveal their views.

The prime minister also used his address to speak to Gen-Z about India’s development journey and asked students to consider the challenges the country had faced in the past.

PM Modi recalls past crises

During his speech, PM Modi referred to the 2013 Kedarnath disaster and the 2008 global financial crisis while criticising the handling of national emergencies by previous governments.

He said the government at the time of the Kedarnath disaster was shaken and questioned its ability to respond to the crisis.

Referring to the 2008 banking crisis, PM Modi alleged that the government of the time failed to effectively deal with the situation and claimed that India’s banking system was pushed close to collapse.

Prime minister lists challenges faced by his government

PM Modi also highlighted several major global crises that occurred during his government’s tenure.

He mentioned the COVID-19 pandemic, the Russia-Ukraine war, disruptions to global trade and supply chains, and the crisis in West Asia.

The prime minister said there had been concerns that India would struggle during these crises but argued that the country had continued to move forward.

PM Modi’s earlier SRCC visit

PM Modi had earlier visited SRCC in 2013, when he was the chief minister of Gujarat. His speech at the college received significant attention, particularly on social media, ahead of the 2014 Lok Sabha election.

His latest visit came during the college’s centenary celebrations, where his address focused on young people, India’s development ambitions and the challenges faced by the country.

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Nagaland Assembly urges Centre to withdraw Protected Area Permit regime

Nagaland Assembly unanimously passed a resolution urging the Centre to withdraw the Protected Area Permit regime, citing concerns over tourism, investment and international engagement.

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The Nagaland Legislative Assembly has unanimously passed a resolution urging the Centre to withdraw the Protected Area Permit (PAP) regime in the state, arguing that the restrictions are affecting tourism, investment, international engagement and economic opportunities.

The resolution was moved by Deputy Chief Minister and Home Minister Yanthungo Patton and was adopted through a voice vote.

PAP regime was reimposed in 2024

The Protected Area Permit regulates the entry of foreign nationals into notified areas. The regime had been relaxed in Nagaland in 2011 but was reimposed on December 17, 2024.

During the Assembly discussion, Patton said Nagaland had emerged as a peaceful destination for tourism, culture, investment, entrepreneurship and international engagement. He said these sectors were increasingly contributing to employment and livelihood opportunities, particularly for young people.

The resolution also highlighted events and initiatives such as the Hornbill Festival and the “Land of Festivals” initiative, saying they had helped showcase Nagaland and India’s cultural diversity internationally while generating economic opportunities for local communities and entrepreneurs.

Assembly links PAP restrictions to economic concerns

The state government argued that the return of the PAP regime has complicated efforts to expand international tourism, business and investment.

The Assembly resolution said the regime was creating difficulties for international tourism, business and investment, along with cultural exchanges and overseas partnerships.

However, the state maintained that relaxing the permit regime would not mean compromising national security.

The resolution assured the Centre that foreign nationals could continue to be registered, regulated and monitored through technology-based and institutional mechanisms in coordination with central agencies.

Neiphiu Rio backs review of PAP regime

Chief Minister Neiphiu Rio also participated in the debate along with Tourism and Higher Education Minister Temjen Imna Along, Industries and Commerce Advisor Hekani Jakhalu and MLA Naiba Konyak.

The legislators maintained that Nagaland’s present circumstances warranted a different approach, stressing that the state was peaceful and seeking greater opportunities in tourism, investment and other sectors.

Rio linked the demand to Nagaland’s economic aspirations and the need to create more opportunities for young people while maintaining the state’s commitment to national security.

“Security and development can go together,” Rio said.

The resolution further argued that regulations that have outlived their developmental relevance should not become barriers to employment, economic activity and Nagaland’s participation in the wider national and global economy.

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Mayawati says Akash Anand needs more maturity, rules out major BSP role

BSP chief Mayawati says nephew Akash Anand needs greater political maturity before taking on a major responsibility in the party.

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Akash Anand

Bahujan Samaj Party (BSP) chief Mayawati on Thursday said her nephew Akash Anand needs to gain greater political maturity before he can be entrusted with any major responsibility in the party.

Addressing a national-level meeting of BSP office-bearers, Mayawati said she had allowed Akash Anand to continue working within the organisation but felt that he was not yet ready to handle a significant party responsibility.

“I have allowed Akash Anand to work in the party, which is before all of you, but Akash Anand still needs to become more mature. Till then, it would not be appropriate to give him a major responsibility in the party,” Mayawati said.

Mayawati also made it clear that Akash Anand, who is the BSP’s national coordinator, would continue working in the party. However, he will not be entrusted with any major responsibility for the time being.

Mayawati refers to Kanshi Ram’s principles

Explaining her position, Mayawati referred to the principles of BSP founder Kanshi Ram.

She said Kanshi Ram had permitted members of his family and other relatives to assist with party work, but was against giving them election tickets or positions after the party came to power.

Mayawati said she was also committed to following that principle. According to her, maintaining this approach was important to protect the BSP from tactics allegedly employed by political opponents during elections.

BSP to contest elections alone

During the meeting, Mayawati also announced a major political decision concerning the BSP’s electoral strategy.

She said the party had decided to contest all elections across the country on its own, irrespective of whether they were small or major elections.

Targeting the Congress, Mayawati described it as a “strongly anti-Dalit and anti-Ambedkar” party and said the BSP would therefore fight elections independently rather than depend on other parties.

The decision was announced as Mayawati reviewed the BSP’s organisational work and discussed shortcomings with party office-bearers.

She instructed leaders at different levels to implement the party’s annual organisational activities with complete honesty and dedication.

Mayawati attacks RSS over minority rights

Mayawati also criticised the Rashtriya Swayamsevak Sangh (RSS), referring to comments made by its chief Mohan Bhagwat during his recent visit to the United States.

Bhagwat had said that a Hindu who believes there should be no Muslims in Bharat would not remain a Hindu. He had also spoken about Hindu philosophy accepting that different faiths can lead to the same truth and emphasised the idea of unity in diversity.

Mayawati, however, said there was a significant difference between the RSS’s statements and its actions.

She argued that the organisation lacked credibility when it came to issues concerning the interests and welfare of the Bahujan Samaj, reservation as a constitutional right, and the safety, dignity and religious freedom of women, Muslims and other religious minorities.

She further said that despite its long existence, the RSS had not received the recognition and respect it sought.

Mayawati invokes Ambedkar’s Constitution

The BSP chief also challenged the RSS to demonstrate its commitment to the Constitution drafted under the leadership of Babasaheb Dr Bhimrao Ambedkar.

Mayawati said that if the RSS genuinely had faith in a humanitarian, welfare-oriented and egalitarian Constitution, it should follow its principles honestly and ensure that its members did the same.

BSP reiterates focus on Bahujan Samaj

At the national meeting, Mayawati reviewed the BSP’s organisational activities, assessed its shortcomings and gave directions to office-bearers regarding the party’s future work.

She reiterated that protecting the interests of the Bahujan Samaj and bringing exploited and deprived sections to political power remained the BSP’s central mission.

Mayawati maintained that achieving political power was necessary for the party to fulfil these objectives.

Her latest remarks on Akash Anand indicate that while her nephew will remain associated with the BSP and continue working for the organisation, he will not receive a major party responsibility until she believes he has attained the required political maturity.

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