Two JPC probes needed: One on Rafale deal, one on demonetisation

Having been put firmly on the mat by questions on possible huge irregularities in the controversial Rafale deal, the Narendra Modi government is resorting to its old tactics of diverting attention with the Bharatiya Janata Party’s misconceived ideas of nationalism. Ever since the revelations made by former French President Francois Hollande that the government of India had proposed Anil Ambani’s Reliance Defence as offset partner and the French government had no option in this, minister after minister of the Modi government are weaving different theories to hide their blushes.

First, it was alleged that the former French president made the observation to help the Opposition in a fight against the Prime Minister. But Hollande reiterated his charge to journalists probing allegations of conflict of interest against him. The charge of conflict of interest relates to a contract between Hollande’s partner and Anil Ambani’s entertainment outfit. To fend off assertions that favour was shown to Anil Ambani in the Rafale deal due to this conflict of interest, Hollande asserted that Anil Ambani’s company Reliance Defence Ltd was suggested by the Indian Government for the Rafale deal, giving the French Government and Dassault Aviation no other option.

As Prime Minister Narendra Modi himself negotiated the deal without taking anybody else into confidence, the charge against him is that he has favoured Anil Ambani’s weeks-old company with the gift of a ₹30,000 crore-contract, at the expense of state-owned Hindustan Aeronautics Limited. While his ministers have been fulminating at these charges, the PM himself has kept mum about how a company incorporated just a couple of weeks before he announced the deal, bagged the lucrative offset contract. Defence Minister Nirmala Sitharaman’s claim that Ambani’s Reliance Defence was favoured as the HAL did not have the requisite capability has made the situation worse for the Modi Government, as Sitharaman was roundly condemned from several quarters, including an incensed, recently-retired HAL chief.

Having failed to deflect the charges on the Rafale deal, including allegedly paying three times more than the price per plane fixed by the earlier UPA Government, and endangering national security, the Modi Government is now trying to rouse sentiments of nationalism. After accusing the Opposition Congress of collaborating with the former French President, it then tried to drag in Pakistan. The prime minister himself talked about Congress trying to form an "international alliance" to oust him. This clearly shows the desperation in the upper echelons of the Modi Government.

Equally important to probe is the case of demonetisation

While continuing the campaign on alleged corruption in the Rafale deal and persisting with the demand that it be probed in entirety by a Joint Parliamentary Committee, the Opposition should also take up the equally important case of demonetisation. Especially now that the RBI and other central government outfits have conceded that the goals that Prime Minister Narendra Modi fixed while announcing withdrawal of high denomination currency notes of ₹1,000 and ₹500 face value could not be achieved.

While the poor were left to fend for themselves at long queues outside banks and post offices, with an ever-shortening window in which to change their precious notes, the grins on certain faces in big business could not have been wider. Who can forget the full page newspaper advertisements, complete with the photo of the Prime Minister himself, taken out by these corporates the very next morning, within a few hours of the PM’s announcement?

At the time of demonetisation, it was claimed that the government would gain ₹3 lakh crore of black money from that percentage of these two banned currency notes which would not be deposited in banks. If there was indeed such a huge amount of black money in cash, it has all now become white after the RBI declared almost all the notes were returned to banks. The newly floated currency note of ₹2,000, introduced bizarrely at the time of an exercise to reduce large denomination notes which supposedly benefit black money hoarders, has in fact played a big role in enhancing black money stashes, which continue to be unearthed nearly two years after demonetisation.

Several reported have suggested that BJP leaders and their associates have benefited due to the note ban. Is this why the party which leads the government is obstructing the finalisation of the report of the Parliamentary committee on finance? Does BJP fear what this committee may expose about goings-on in the time of demonetisation? About who knew ahead of time? About who gained while the people of India struggled to meet expenses for their basic needs? Apart from the murky Rafale deal, there can be no more fit case for a JPC probe than the demonetisation exercise.

Inputs by NH Web Desk