Finance Minister Arun Jaitley on Sunday refuted Congress President Rahul Gandhi’s allegation against Prime Minister Narendra Modi in Rafale deal by questioning former French President Francois Hollande’s statements. On Friday, a media portal quoted Hollande as saying that the Indian Government proposed the name of Reliance Defence to the French Government in the Rafale fighter aircraft deal for fulfilling offset clause.

“Truth cannot have two versions,” Jaitley said in his blog titled ‘ A Questionable Statement Which Circumstances & Facts Demolish ’ posted a day after Gandhi scion mounted an attack on the Prime Minister alleging corruption in fighter aircraft deal.

Quoting the French Government and aircraft manufacturer Dassault Aviation, the Minister said that both of them categorically denied the correctness of the former President’s first statement. The French Government has stated that the decision with regard to the offset contracts of Dassault Aviation are taken by the company and not the Government. Dassault Aviation itself has suggested that they have entered into multiple contracts with several public sector and private sector companies with regard to the offset contracts and the decision is entirely theirs.

Circumstances never lie

Jaitley, without commenting on the correctness or otherwise of a controversy in the French media, says former French President Hollande is countering statement made against him with regard to a conflict of interest in his dealing with the Reliance Defence. “The accuracy of the statements made by the individuals may be questioned but circumstances never lie,” he said, while arguing that there was no ‘partnership’, as suggested by the former President. It was a Government to Government agreement under which the complete weaponised aircraft are to come to the Indian Air Force. No manufacturing is to be done in India.

Second, Reliance Industries, in February 2012, had entered into an MoU with Dassault Aviation which was reported widely in various news media. This was at a stage when the contract relating to 126 Rafale aircraft, of which 18 were to be manufactured in France and 108 in India, was at an advance stage of consideration by the UPA Government. “Rahul Gandhi’s misplaced criticism could equally apply to the 2012 MoU,” he said.

The offset contract ensures investment by the original equipment supplier, that is, Dassault Aviation, in India, in as much as they make purchases from Indian companies to the extent of fifty percent (in this case), he added. The choice of the offset partner under the 2005 offset policy is of Dassault Aviation and they have selected several public and private sector companies to make the supplies.

The offset partner is selected entirely by the Dassault Aviation, the original equipment manufacturer, and neither the French Government and nor the Indian Government has any say in the matter, he said.

The former French President’s first statement that the Indian business group’s name was proposed by Government of India has now been substituted by him to he is ‘not aware’ of the Government of India ever lobbied for Reliance Defence. According to news agency AFP’s report dated September 22 Hollande further said that the ‘partners’ chose themselves.

Jaitley termed Rahul Gandhi’s suggestion as absurd which said that the interest of Indian soldiers has been compromised with. By whom, he asked --- the UPA that delayed the acquisition which would have added to the military’s combat ability or the NDA which expedited the same at a lower cost?

The blog concluded that one Reliance Group was a part of this deal since 2012. It dropped out of defence production. The other Reliance Group was already in defence. They are not partner in the Rafale deal. They have no contract with either Government of India or Government of France. They were not selected as one of the many offset partners by any Government. ‘The partners (Dassault and Reliance) selected themselves’ as former President Hollande now says. This contradicts his first questionable statement which the French Government and Dassault have denied, Jaitley said while making it clear that the facts contradict the same. “His second statement in Montreal, Canada, to AFP makes the veracity of his first statement even more questionable,” the Minister wrote.

Related Topics
comment COMMENT NOW