Reliance Defence Limited has denied Congress allegations as 'baseless and unfounded'.
As political controversy kicked in over Congress allegations that industrialist Anil Ambani’s company was favoured by the government in Rafale deal, Reliance Defence Limited has rebutted the allegations as “baseless and unfounded”.
It sought to flag what it called “factual inaccuracies” in the statement made by AICC Communication department chief Randeep Surjewala on Tuesday. Regarding the allegation that Ambani, owner of Reliance Defence Limited was present in France with Prime Minister Narendra Modi when the later visited in April 2015 announced the deal for purchase of 36 Rafale Fighter Aircrafts, the RDL said, Anil Ambani is a member of Indo French CEO Forum and in the said meeting, more than 20 Indian CEOs were present including Chairman of HAL D Suvrana Raju and others
Surjewala had alleged that on February 16, 2017, Reliance Defence Limited through its subsidiary Reliance Defence and Aerospace Limited inked a joint venture with Dassault Aviation for defence production and that the company’s website R. Infra reflects that they are undertaking offset obligations of 30,000 crore with Dassault Aviation for 36 Rafel aircrafts. The company said that In the official press statement issued by Dassault and Reliance on 03 October 2016, it is clearly mentioned that offfset obligations are to be undertaken by Dassault Reliance Aerospace joint venture company and not by Reliance Defence. “Reliance Group does not have any company by the name of Reliance Defence & Aerospace Ltd. Dassault Reliance Aerospace Ltd will be only one of the key players in the discharge of offset obligations.
The RDL further said that 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 and that offsets referred to are spread over a period of nearly 10 years.
Regarding the Congress question as to why did the Prime Minister promote the interests of one industrial group- Reliance Defence Limited, which has led to the company tying up and entering into a joint venture with Dassault Aviation, the RLD said that the joint venture between Reliance Aerostructure Ltd and Dassault Aviation is a bilateral agreement between two private companies and Dassault Aviation selected Reliance Aerostructure Ltd as its joint venture partner. “The Indian Government has no role to play in this,” it said.
Replying to the allegation why has the joint venture for the biggest-ever Indian defence deal between Dassault Aviation and Reliance Defence Limited not gone through the proper procedure of approval by the Union Cabinet, Cabinet Committee on Security and Foreign Investment Promotion Board, the company said that the government policy issued on June 24, 2016 allows for 49% FDI in the Defence Sector under the automatic route, without any prior approval.
“No approvals from the Union Cabinet or CCS were required for the formation of the aforesaid Joint Venture company under the automatic route,” the RDL said. ""From the above it is very obvious that all allegations are unfounded and false. We request the AICC to correct the facts as stated by us. We reserve the right to take appropriate legal action against any party that disseminates these defamatory allegations," the RDL said.
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