Anil Ambani floated Reliance Defence days before Modi announced Rafale deal

10 days before PM Modi’s visit to France in April 2015, Anil Ambani floated his defence venture by the name ‘Reliance Defence Limited’. This is also shown in the records of Ministry of Corporate Affairs. As per the records, Reliance Defence Limited was started with a paid-up capital of five lakh rupees.

According to the allegations by Congress President Rahul Gandhi, Anil Ambani’s parent company was in debt of Rs 35,000 crore but after the Rafale deal signed by the Modi Government, the company gained an huge amount of Rs 45,000 crore.

A new deal with Dassault Aviation Limited was announced on the very first day of PM Modi’s visit to France in April 10, 2015. As per the deal, the France based Dassault Aviation Limited was responsible to supply 36 Rafale fighter jets to India. Subsequently, the French company collaborated in a joint venture with Anil Ambani’s company.

Also read: Anil Ambani refutes allegations on Rafale Deal, writes letter to Rahul Gandhi

Reuters had then quoted a French Ministry source saying the original negotiations in the deal were different than the deal announced in 2015. The authorised capital of Anil Ambani’s company, ‘Reliance Defence Limited’ was Rs 5,00,000 only. Experts say such a small amount questions the probity of the promoter.

The maximum amount of share capital that a company can issue to its shareholders is decided by the authorised capital of the company that it initially invests. It is uncommon and sporadic for a company with such low authorised capital to be allowed to sign a deal worth thousands of crores of rupees. This very act by the government indicates that there has been violation of rules and norms to facilitate the Anil Ambani company in this particular deal.

According to analysts, to benefit a single company, the ruling BJP government had allowed the Reliance Defence Limited with authorised capital of Rs 5,00,000 only, to sign a deal worth crores of rupees and then changed the clauses of the deal that were earlier laid down by the preceding UPA government.

During the no-confidence motion debate on July 20, Rahul Gandhi called PM Narendra Modi a ‘collaborator’ in Rafele deal. The congress President also said, “Modiji had said he wanted to be made the watchman guarding the country’s assets, but he is no watchman, he is a collaborator (in the loot).”

Also read: Nirmala Sitharaman lied to the nation in Rafale Deal claims Rahul Gandhi

Not mentioning anybody’s name, Rahul Gandhi asked PM Modi to give an explanation on why Rs 45,000 crore contract was taken away from the state-owned Hindustan Aeronautics Limited (HAL) and given to a ‘corporate ally who had a debt of Rs 36,000 crores and have never built an aeroplane.’

Congress President Rahul Gandhi also mentioned, “The price of a Rafale aircraft negotiated by the UPA was ₹570 crore. Modiji goes to France and does magic to jack the price to ₹1,670 crore.”