Rafale deal biggest example of crony capitalism by Modi govt: Cong

Press Trust of India  |  New Delhi 

Calling the multi-crore jet deal "the biggest example of crony capitalism", the today alleged the has "compromised national interest" by helping a private entity to the tune of crores of rupees in violation of rules.

He alleged that the is "deceiving" the country by not giving answers about award of contract to a in this "mother of all defence deals".

The government has been rejecting all allegations about the deal.

The told reporters that shocking revelations have brought out lies of about the award of Rs 30,000 crore 'defence offset contract' to as part of this deal.

"The culture of crony is the DNA of the It is truer than ever in case of the Rs 60,145 crore deal," he said.

"The art of deceiving 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," Surjewala said.

"Rs 1,30,000 crore lies is being peddled by Modi government. has claimed to have secured the offset contract from Dassault (maker of Rafale jets) for Rs 30,000 crore and a consequent 'lifecycle cost contract' of Rs 1 lakh crore," he said.

The Congres said even Dassault in its annual report for 2016-17 has claimed that offset contract is being executed by Reliance, while the has claimed that the offset contract has not been awarded by Dassault

"The simple question is, who is lying or Reliance/," he asked.

Citing rules, Surjewala said all offset proposals need to be approved by Defence Minister and be part of approval for the main procurement of and the offset contract is required to be countersigned by the Acquisition Manager' of the

He alleged that the defence offset contract went to a private company with zero experience of Besides, was formed just 12 days before the announcement of purchase of 36 Rafale aircrafts by the in on April 10, 2015 and did not have a licence to manufacture fighter jets, he said.

A Reliance firm was given licence to manufacture fighter aircrafts by the but it did not own any land or building on the date of the licence on February 22, 2016, Surjewala said, adding that the company was incorporated on April 24, 2015 -- 14 days after the announcement of purchase of 36 Rafale aircrafts.

This, he said, was done after suddenly denying the biggest ever defence offset contract to public sector (HAL), which signed Rs 36,000 crore offset contract in shape of a Workshare Agreement' on March 13, 2014 till PM Modi 'unilaterally' announced an off-the-shelf' purchase of 36 Rafale aircrafts.

Surjewala alleged there was "mal-intent" of the and complete surrender of the defence minister vis-a-vis the interest of the only Government company having experience of manufacturing fighter

"Does the prime minister represent the interest of private companies and private industrial houses or is his duty and obligation to protect an existing signed contract between an experienced government company as also the supplier of weapons system?" the Congress asked.

The Congress leader asked whether Sitharaman was not aware that French defence minister met her and told her that she was going to Mehan where BJP's government gave land to Reliance Defence for a joint venture for offset contract.

"It only shows that the national interest was being compromised by the of India," Surjewala said, while alleging that guidelines on defence contracts have been violated.

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

"Why are Prime Minister Modi and Defence Minister Sitharaman lying on the issue? It is time for Prime Minister Modi to answer to the nation," he said.

Surjewala cited an earlier press release from Reliance, claiming it quoted 7.87 billion Euros (over Rs 60,000 crore) as the cost of the Rafale deal after and signed a purchase agreement for supply of 36 Rafale fighter jets on September 23, 2016.

"The contract includes a 50 per cent offset obligation to the tune of approximately Rs 30,000 crore, which is the largest ever offset contract in the history of DRAL (Dassault Reliance Aerospace Limited) will be a key in the execution of offset obligations," he quoted Reliance as having said in the release.

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

First Published: Fri, July 27 2018. 19:50 IST