Rafale faces air turbulence

Calls for a holistic and transparent investigation into the Rs. 59,000 crore Rafale combat aircraft deal are getting shriller by the day. The Modi Government’s constant stonewalling of the demand seeking a joint parliamentary committee to investigate the deal appears irrational when the home country of Dassault, the manufacturing firm of Rafale jets, itself has ordered a judicial probe into it. The latest report emanating from the French investigative portal Mediapart points out that France’s National Financial Prosecutor’s Office (PNF) would investigate ‘corruption and favouritism’ suspected in the 2016 deal with India for the purchase of 36 Rafale jets.

In spite of denial of allegations of kickbacks by Dassault Aviation and Modi Government’s refusal to come clean on the issue, there are enough pointers that justify the call for a thorough probe from India. The Government’s effort to avoid any probe into the deal is quite contrary to its na khaoonga, na khane doonga (‘neither will take bribe, nor will allow others to indulge in corruption’) stance.

Chronology of the events leading to the deal between February and April 2015 makes it apparent that all was not above board in events leading to the deal. The previous United Progressive Alliance (UPA) had negotiated the purchase of 126 of the same aircraft at Rs. 526 crore. The inflated price is one among the major allegations besides payment of Rs. 65 crore as brokerage to middleman Sushen Gupta.

The Modi Government, which till February 2015 had appeared intent upon cancellation of the deal, suddenly announced finalisation of purchase of 36 jets at an inflated price of Rs. 1,670 crore. Even its own ministers were caught unawares at the announcement from Paris by Mr. Modi who was on an official visit.  The overnight transfer of the then CBI Director Alok Verma, who was investigating into the charges of kickbacks following a raid at his office and home, rendered the entire deal even murkier.
Questions as to why the offset contract was given to a private firm—Anil Ambani’s Reliance Defence Ltd in this case—and not to the public sector Hindustan Aeronautics Limited, also beg answers. Furthermore, then President Francois Hollande is on record to have said that the Indian Government itself had suggested Reliance as the offset partner. This contradicts the Modi Government’s official stance that the offset partner was chosen by Dassault Aviation.

These questions bolster the demands raised by the Opposition Congress party as well as the media that the deal besides having caused financial losses to the exchequer smacks of corruption and crony capitalism. The issues cannot be swept under the carpet by dubbing the allegations as lies. Investigation by a joint parliamentary committee would be a step in the right direction.