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CPM alleges Modi govt misused public funds in Rafale deal so that 'crony gets massive tax breaks'

Press Trust of India  |  New Delhi 

The CPI(M) on Saturday alleged that the misused public funds to pay an "exorbitant" price for fighter jets to benefit "crony businessman" through offset deal and French tax benefit.

The party was reacting to a report in French newspaper claiming that waived tax for the French subsidiary of Anil Ambani's in 2015, months after India's announcement of buying 36 jets.

"So, our public money is used by Modi govt to pay exorbitantly more for far fewer fighters than required, to benefit a through the defence deal and French tax benefit. No wonder BJP introduced secret Electoral Bonds for party funding, legalising corruption," CPI(M) said.

"The whole nexus is now coming out into the open. PMO was directly involved in Rafale scam bypassing our Air Force, and was illegally negotiating in As former French said, Modi asked for as a for the deal. And now this - French tax waivers," he tweeted.

The French newspaper said tax authorities accepted 7.3 million euros from Reliance Flag Atlantic as a settlement as against original demand of 151 million euros. Reliance Flag owns a and other in France.

Modi had announced the procurement of a batch of 36 Rafale jets after talks with the then French on April 10, 2015 in The final deal was sealed on September 23, 2016.

In its reaction, rejected any wrongdoing and said the tax dispute was settle under legal framework which is available for all companies operating in France.

Yechury said, "Modi goes to France, compromises national security by signing on fewer aircraft, gives deal to crony Ambani, HAL is kept out. So the public pays 41per cent higher amount for fewer and crony also gets massive tax breaks. Modi formula of helping his rich friends," he said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, April 13 2019. 17:55 IST
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