Modi govt deceiving country, violated rules in Rafale deal

Image
Press Trust of India New Delhi
Last Updated : Jul 27 2018 | 4:40 PM IST

The Congress today accused the government of "deceiving" the country and promoting crony capitalism in awarding a private entity the contract for the multi-crore Rafale aircraft deal, which it described as the "mother of all deals".

Prime Minister Narendra Modi must give answers to the nation, the party's chief spokesperson Randeep Surjewala said.

The Congress will demand in Parliament that the prime minister speaks on the Rafale deal during the current Monsoon session, he added.

"The culture of crony capitalism is the DNA of the Modi government. It is truer than ever in case of the Rs 60,145 crore Rafale deal," he told reporters.

"The art of deceiving India is the Modi government's mantra in this mother of all defence deals. Intrigue, conspiracy, deception and loss to public exchequer have marred the unilateral purchase of 36 Rafale aircrafts by the government," the Congress leader added.

He alleged that the defence offset contract went to a private company, Reliance Defence, which had zero experience of manufacturing fighter aircrafts.

He also alleged that Reliance Defence was formed 12 days before the announcement of purchase of 36 Rafale aircrafts by the prime minister in France on April 10, 2015 and did not have the licence to manufacture fighter jets.

Reliance Aerostructure was given the licence to manufacture fighter aircrafts by the Defence Ministry but it did not own any land or building on the date of the licence on February 22, 2016, Surjewala added.

Reliance Aerostructure was incorporated on April 24, 2015, 14 days after the announcement of purchase of 36 Rafale aircrafts, he said.

According to the Congress leader, guidelines on defence contracts were violated. The Defence Ministry has to give its permission whenever a defence offset contract is signed, he said.

He also cited the rule that a contract should be audited by the Defence Ministry.

"All these rules were violated," Surjewala said, adding that there was no approval for the defence offset contract to Reliance Defence from Defence Minister Nirmala Sitharaman.

"This is in complete violation of guidelines."

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Jul 27 2018 | 4:40 PM IST

Next Story