Reliance Defence Ltd. said allegations made by Congress party on the $7.8 billion Rafale fighter-jet deal is “baseless and unfounded” under which India acquired 36 warplanes for the Indian Air Force.

In a statement to the media, Reliance Defence Ltd. stated that the committed offset obligations of Rs.30,000 crore are to be undertaken by Dassault Reliance Aerospace joint venture company and not by Reliance Defence.

This also covers obligations of other French OEMs including Thales, Safran & MBDA and not of Dassault alone, which manufactures the Rafale jets.

“Dassault Reliance Aerospace Ltd will be only one of the key players in the discharge of offset obligations. Over 500 large, medium and small Indian companies will benefit from the offsets which are nothing but an export obligation for goods and services from India. Offsets referred to are spread over a period of nearly 10 years,” Reliance said.

Refuting Congress’ allegation that Reliance Defence Ltd.’s Chairman Anil Ambani accompanied Prime Minister Narendra Modi in his trip to France in April 2015, the company said he did because he is one of the members of the Indo-French CEO Forum.

The statement also noted that The Joint Venture between Reliance Aerostructure Ltd and Dassault Aviation is a bilateral agreement between two private companies. Dassault Aviation selected Reliance Aerostructure Ltd as its joint venture partner.

Clarifying the issue on why the joint venture between Dassault Aviation and Reliance Defence Ltd not gone through the proper procedure of approval and Cabinet Committee on Security (CCS), the statement said, it was not taken because under the foreign investment rules, international defence firms are allowed to invest 49 per cent of foreign equity under automatic route.

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