Rafale deal: Defence procurement processes broadly followed, says SC

The Supreme Court said Friday it cannot seek clause-by-clause compliances of Defence Procurement Procedures (DPP) in the Rafale fighter jet deal and opined that the processes have been "broadly" followed.

It also expressed satisfaction with the government's decision-making process which led to the deal between India and France for procurement of 36 Rafale jets, saying that there was "no occasion to really doubt" it.

The top court, while junking the PILs challenging the Rs 58,000 crore Rafale deal, examined the three "broad areas of concern" -- the decision-making process, difference in pricing and the choice of Indian Offset Partner by Dassault Aviation.

Scrutinising the decision-making process, a bench headed by Chief Justice Ranjan Gogoi said though it had no occasion to really doubt the process, even if there were minor deviations then they would not lead to annulment of the deal.

On the DPP, the court cannot seek "clause-by-clause compliances" of the Defence Procurement Procedures. "Broadly, the processes have been followed".

The bench, also comprising Justices S K Kaul and K M Joseph, said: "We have studied the material carefully. We have also had the benefit of interacting with senior Air Force Officers who answered court queries in respect of different aspects, including that of the acquisition process and pricing.

"We are satisfied that there is no occasion to really doubt the process, and even if minor deviations have occurred, that would not result in either setting aside the contract or requiring a detailed scrutiny by the court."
It further added: "We have been informed that joint exercises have taken place, and that there is a financial advantage to our nation. It cannot be lost sight of, that these are contracts of defence procurement which should be subject to a different degree and depth of judicial review."
"The hard fact is that not only was the contract not coming forth but the negotiations had come practically to an end, resulting in a recall of the RFP. We cannot sit in judgment over the wisdom of deciding to go in for purchase of 36 aircrafts in place of 126."
"ManHours that would be required to produce the aircraft in India: HAL required 2.7 times higher ManHours compared to the French side for the manufacture of Rafale aircraft in India," it noted, adding "issues related to contractual obligation and responsibility for 108 aircraft manufactured in India could not be resolved."