French aircraft manufacturer Dassault, from whom India purchased 36 Rafale jets, had allegedly agreed to pay one million euros (Rs 8.5 cr approx) to a middleman in India just after the signing of the contract in 2016, reports French publication Mediapart. The deal was much-talked about in the run-up to the 2019 Lok Sabha elections when the Opposition Congress accused the Narendra Modi government of alleged bribery in the deal.
Also Read: Second batch of Rafale fighter jets arrive in India: A timeline of the deal
“In 2016 France and India signed a 7.8-billion-euro deal for the purchase of 36 Rafale jet fighters made by French defence group Dassault. Mediapart can reveal that, alongside this controversial deal, Dassault also agreed to pay one million euros to a middleman who is now under investigation in India in connection with another defence deal,” the report said.
Dassault is yet to respond to the allegations.
According to the investigative report, published on April 4, French anti-corruption agency Agence Française Anticorruption (AFA) chanced upon this arrangement during an audit of Dassault. The AFA, however, decided not to alert the prosecution authorities over the payment. This is the first of a three-part report and bigger revelations are expected in subsequent parts.
Soon after the deal was finalised on September 23, 2016, Dassault had agreed to pay the amount to one of its sub-contractors in India, Defsys Solutions. According to the aircraft company, money was used to pay for the manufacture of 50 replica models of Rafale jets, Mediapart reported. However, the company was not able to provide any proof to the AFA to show that the models were actually made.
Also Read: India, France and Australia to hold trilateral talks
Defsys Solutions, the company to which the amount was allegedly paid, is owned by Sushen Gupta, who was arrested by the Enforcement Directorate in a money laundering case relating to the AgustaWestland scam in March 2019 . He is now out on bail.
Soon after the report became public, the Congress hit out at the government, seeking a probe into the allegations saying the government and the BJP was answerable to the people of India. “There is a genuine concern that needs to be addressed by transparency… there is a complete lack of transparency and accountability in the regime of Narendra Modi,” party spokesperson Randeep Singh Surjewala said.
Also Read: New horizons emerging for India from Desert Flag VI
Congress leader Rahul Gandhi has been in the forefront of blistering attacks on the government over this defence deal. “Money was stolen from the Indian exchequer in Rafale,” Gandhi had alleged in a tweet. “Congratulations to IAF for Rafale. Meanwhile, can GOI answer: 1) Why each aircraft costs Rs 1670 Crores instead of Rs 526 Crores? 2) Why 36 aircraft were bought instead of 126? 3) Why was bankrupt Anil given a Rs 30,000 Crores contract instead of HAL?” Gandhi had said in another tweet.