Connect with us

Featured

Will Anil Ambani’s Fortune Change With The Arrival Of Rafale Jets?

Anil Ambani and Rafale Jets: In 2016, India and France signed a purchase agreement for the supply of 36 Rafale fighter jets at a value of €7.87 billion, or about Rs 60,000 crore. Under the agreement, the 36 Rafale procurement offset proposal supports the ‘Make In India’ initiative.

Published

on

India recently received five Dassault Aviation Rafale fighter jets from France. The touchdown of Rafale jets has resurrected the controversies surrounding the French origin aircraft, one of which had roped in business tycoon Anil Ambani. 

No Buyers For Rafale Jets: Why Almost Every Country Dumped French Rafales Except India?

Several opposition leaders and critics had raised the question about the joint venture of Dassault Aviation with Ambani’s Reliance group.

Anil Ambani’s several group companies have declared bankruptcy and numerous assets have been taken over by banks. The latest one in the list is Yes Bank’s takeover of Anil Ambani’s Reliance Group headquarters at Santacruz and two other offices in south Mumbai over the recovery of Rs. 2892 crore loan to Reliance Infrastructure.

From Indian Border To South China Sea, Chinese Air Force (PLAAF) Ups The Ante With H-6 Bombers

In 2016, India and France signed a purchase agreement for the supply of 36 Rafale fighter jets at a value of €7.87 billion, or about Rs 60,000 crore. Under the agreement, the 36 Rafale procurement offset proposal supports the ‘Make In India’ initiative. It means that the French side will facilitate the implementation of ‘Make In India’ by the industrial supplier through offsets for 50% value of the supply protocol.

Merely two weeks later, Dassault and Reliance announced their joint-venture Dassault Reliance Aerospace Limited (DRAL). It was reported in 2019 that Dassault Aviation is likely to start manufacturing components of the Rafale fighter jets at the Nagpur facility of DRAL, with the wares destined for global customers.

Opposition parties and netizens raised the question that despite no experience in aircraft production, why Ambani’s sinking company was awarded the contract instead of Hindustan Aeronautics Limited. It was alleged that the deal was made because of Ambani’s closeness to the top government officials. The opposition leaders also alleged that the deal as “promoted corruption”.

Indian Army Fears A Repeat Of Siachen Conflict But This Time With China

Meanwhile, former French president Francois Hollande, who negotiated the Rafale deal with Prime Minister Narendra Modi, declared that it was the Indian government who proposed Reliance — “we had no choice”, he said. However, Dassault had responded saying it was not influenced to pick Anil Ambani’s company.

Later, it was reported by the French media that the French government gave a tax exemption of about 1100 crores to a company of Anil Ambani between February and October 2015. According to the report, a few months before this tax relief, India’s Prime Minister Narendra Modi announced his plans to buy 36 Rafale fighter aircraft with French company Dassault Aviation.

Congress party’s election campaign for 2019 Lok Sabha elections focused on the Rafale deal alleging that an overpriced deal has been signed as an offset contract for Anil Ambani’s inexperienced defence company. The government rubbished such claims.

rafale-jets

Rafale Jets

Following a Congress petition, the Supreme Court gave a clean chit to the government and confirmed its earlier order that no irregularities or corruption were found in the deal.

Anil Ambani’s Downfall

In the last two decades, after the partition of the Reliance empire due to the founder’s death, Dhirubhai Ambani, the two heirs Mukesh and Anil have followed an opposite trajectory. While Mukesh Ambani became the 6th richest person in the world, Anil Ambani has reportedly admitted in a London court that his net worth is zero and he “doesn’t hold any meaningful assets”.

From being the 6th richest man in 2008, Anil Ambani explored several lines of business but things started to go downhill after losing a Supreme court case in 2010 against his brother, Mukesh Ambani.

India Scrutinizing Russian SU-57 Stealth Jets As Makers Struggle To Fulfill Orders

Soon after, the share price of Reliance Power plummeted, it compelled Anil Ambani to take loans from banks and foreign institutions. Economic affairs analysts believe that till some time ago corporate houses belonging to powerful and political parties were able to delay repayment despite heavy debts, but after NPA (Non-Performing Asset) become a political matter, it became difficult to do so.

Experts also argue that the change in laws has impacted such practices. Now debtors can declare companies as insolvent through National Company Law Tribunal and drag them to court to repay the creditor. In the last decade, Anil Ambani’s debt has increased which eventually led him to declare bankruptcy or sell the stake of his companies.

Netizens have wondered with the arrival of ‘much anticipated’ Rafale jets, will the fortunes of Anil Ambani change for good?

Advertisement
Advertisement

Facebook

FEATURED

Featured36 mins ago

Indian Aircraft Carrier Vikrant Gears Up For Commissioning As Rafales Compete Against F-18s As Its ‘Flying Machines’

The Indian Navy has completed basin trials for its first indigenous aircraft carrier (IAC-1) Vikrant, the Defense Ministry said on...

J-11-CHINA J-11-CHINA
Asia Pacific3 hours ago

Chinese J-11 Fighter Jets Conduct Large-Scale War Drills Near Indian Border – WATCH

China’s People’s Liberation Army (PLA) has conducted a series of extensive exercises with warplanes around a Western Theater Command Air...

Featured6 hours ago

Four Time Faster Than US’ Tomahawks, Why Indian BrahMos Missiles Pose A Grave Risk To China?

The Indian Navy on Tuesday successfully test-fired the anti-ship version of the supersonic cruise missile, BrahMos from stealth destroyer INS...

Asia Pacific6 hours ago

India Falls Back On European Fighter Jets To Counter Rising Menace Of Chinese Swarm Drones

To counter Chinese air defenses in Ladakh and other bordering areas, India has decided to fast-track its swarm drone system,...

S-500-RUSSIA S-500-RUSSIA
Americas16 hours ago

Bad News For F-35 Jets; Russia Set To Unveil ‘Stealth-Killer’ S-500 Missile Systems Next Year

US military experts would be watching anxiously as Russia is all set to enhance its most advanced S-400 missile system...

iranian-scientist iranian-scientist
Featured19 hours ago

Was Israeli Mossad Inspired By Hollywood Movie ‘The Jackal’ To Eliminate Top Iranian Nuclear Scientist? WATCH

Iran claims Israel used a remote-controlled weapon to kill the country’s top nuclear scientist, Mohsen Fakhrizadeh, on Friday. Another Assassination:...

Imran-Khan Imran-Khan
Featured19 hours ago

Pakistan PM Imran Khan Thanks China For Its Unwavering Stand On Kashmir Issue

Pakistan PM Imran Khan thanked the country’s strategic ally China for its “consistent” and “principled” stand on the longstanding Kashmir...

F-16 F-16
Americas19 hours ago

Canadian Firm To Buy Huge Number Of F-16 Fighter Jets From Israel; Could Exceed The Fleet Strength Of RCAF

The Israeli F-16 fighter jets are the A/B variant and were inducted into the Israel Air Force in the 1980s,...

Pakistan-FDI-china Pakistan-FDI-china
Featured22 hours ago

China, Pakistan Sign New Defense Deal Amid Rising Tensions With Common Foe – India

Amid ongoing tensions with India, China and Pakistan have signed a new military deal aimed to boost military cooperation among...

F18-India-Deal F18-India-Deal
Americas1 day ago

F-18 Super Hornets To Be Equipped With Hypersonic Missiles With A Striking Range Of Whopping 1600 Km

Australia will be testing a new air-launched hypersonic missile as part of the joint U.S-Australian program under the Southern Cross...

Advertisement
Advertisement