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Rafale deal: Congress slams govt over 'sovereign guarantee'

The Congress also held PM Modi accountable for the inflated price of Rafale alleging that its price was almost doubled and the PM overlooked dissent from his own ministries.

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Congress members at a protest against Rafale fighter jet deal
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The Congress came out with guns blazing against the Narendra Modi government on Thursday after it admitted in the Supreme Court on Wednesday that the Rafale fighter jet deal was done without a 'sovereign guarantee' but through a Letter of Comfort.

A sovereign guarantee would have bound French government to take full responsibility to deliver 36 fighter jets whereas Letter of Comfort is a much weaker inter-governmental understanding to assure that the obligation will be met.

Hitting out at Modi government for not extracting a sovereign guarantee from France in Rafale deal, Rahul Gandhi asked it was indeed a government-to-government understanding or just another indication that the 'chowkidar' has sold out country's interests.

"The latest skeleton to tumble out of the Rafale cupboard is this: There's no guarantee of the French government backing the deal... Instead, our Prime Minister says there's a letter from France promising to be faithful! That's enough to call this a government-to-government deal," Gandhi tweeted, attaching #BikGayaChowkidar.

The Congress also held PM Modi accountable for the inflated price of Rafale alleging that its price was almost doubled and the PM overlooked dissent from his own ministries.

PM discarded "dissenting notes" by Law Ministry, Ministry of Defence and Defence Acquisition Council (DAC) while in persuasion of the deal, said Congress' media in-charge Randeep Surjewala.

Explaining the timeline of meetings and discussions held regarding the purchase of the Rafale jets, Surjewala said the negotiating team and Defence Acquisition Council (DAC), headed by then Defence Minister, Manohar Parrikar, had a serious dispute on the fixing of benchmark price but ultimately gave up.

The enhanced benchmark price for Rafale fighter was earlier 3 Billion euro, that is 122,743 crore, but PM Modi enhanced it to Euro 8.2 Billion (Rs 62,166 Cr) in order to benefit one of his cronies, alleged Congress.

Not only did the PM increase the benchmark price, but he also relaxed the "sovereign agreement" requirement for the French company Dassault, he said.

Referring to a note of the law ministry, Surjewala said, on December 9, 2015, ministry flagged the issue of no bank guarantee/sovereign guarantee by the French Government and noted the concern that the contract involves huge payouts from public exchequer, without actual delivery in form of advance payments, but the PM did not pay any heed.

Questioning National Security Advisor (NSA) Ajit Doval's involvement in the deal, Surjewala claimed NSA Doval travelled to Paris at behest of the PM and negotiated the price of the jet fighter deal, which is in the complete violation of the established norms.

Surjewala said that NSA negotiated the Rafale Deal in Paris on January 12/13, 2016, which was recorded by the Ministry of Defence two months later in March 2016.

Demanding a Joint Parliamentary Committee (JPC) inquiry, Surjewala accused PM for changing the arbitration between India and France by converting it into an arbitration between the supplier company - Dassault and Indian Government.

"Modi also changed venue of arbitration from India to Switzerland," said Surjewala.

"If the agreement is between Indian & French Govt (IGA), as stated, how can the arbitration be held between India & Dassault Aviation?" asked Surjewala.

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