Modi overlooked dissent, increased benchmark price; Doval pulled off Rafale deal: Congress

Launching a blistering attack on PM Modi, Congress on Thursday held him accountable for the inflated price of the Rafale jet fighter, alleging that the PM has almost doubled the accumulative price of the 36-jet fighter deal, as he overlooked dissent from his own ministries.

PM discarded “dissenting notes” sent by Law Ministry, Ministry of Defence and Defence Acquisition Council (DAC) in persuasion of the deal, said Congress on Thursday, adding that enhanced benchmark price for Rafale jet fighter was earlier Euro 3 Billion, that is ₹ 22,743 Crores, but PM Modi enhanced to Euro 8.2 Billion (₹ 62,166 Cr) in order to benefit one of his cronies.

Sharing the timeline of the meetings and discussions held regarding the purchase of the Rafale jets, the head of the Congress media cell, Randeep Surjewala, said that 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, they gave up.

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

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

He read out the paragraph (4) sub clause (d) of the Law Ministry’s opinion in the conference.

“The contract involves huge payouts of value of procurement, without actual delivery which virtually means advance payment for which adequate Government/Sovereign Guarantees appear to be necessary. However, it is for the Administrative Ministry to take a conscious decision in terms of provisions of Standard Contract Document, 2013, and the Ministry of Finance in the matter.”

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.

Pitching for a Joint Parliamentary Committee (JPC) probe, 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.

It is important to mention that in his reply during the debate on Rafale, PM Modi has emphasised that the deal is between two nations, not two companies.