Anil Ambani firm got 143.7 mn euro tax waiver after Rafale deal announcement: Report
New Delhi: France waived taxes worth 143.7 million euros to a French-registered telecom subsidiary of Anil Ambani's Reliance Communications in 2015, months after India's announcement of buying 36 Rafale jets, a leading French newspaper Le Monde reported Saturday.
In its reaction, Reliance Communications rejected any wrongdoing and said the tax dispute was settled under legal framework which is available for all companies operating in France.
The French newspaper said the French tax authorities accepted 7.3 million euros from Reliance Flag Atlantic France as a settlement as against original demand of 151 million euros. Reliance Flag owns a terrestrial cable network and other telecom infrastructure in France.
Prime Minister Narendra Modi had announced the procurement of a batch of 36 Rafale jets after talks with the then French President Francois Hollande on April 10, 2015 in Paris. The final deal was sealed on September 23, 2016.
The Congress has been alleging massive irregularities in the deal, saying the government was procuring each aircraft at a cost of over Rs 1,670 crore as against Rs 526 crore finalised by the UPA government when it was negotiating the deal.
The Congress has also been targeting the government over selection of Anil Ambani-owned Reliance Defence as an offset partner for Dassault Aviation, the manufacturer of Rafale. The government has rejected the allegations.
The French newspaper said the company was investigated by French tax authorities and found liable to pay 60 million euros in taxes for the period 2007 to 2010.
However, Reliance offered to pay 7.6 million euros only as a settlement but it was French tax authorities refused to accept the amount. The authorities conducted another probe for the period 2010 to 2012 and asked the company to pay an additional 91 million euros in taxes, the report said.
It said by April 2015, the total amount owed by Reliance to the French authorities in taxes was at least 151 million euros.
In October, six months after Modi announced in Paris about the Rafale deal, the French authorities accepted 7.3 million euros from Reliance as a settlement as against the original demand of 151 million euros.
A spokesperson of Reliance Communications said the tax demands were "completely unsustainable and illegal" and that the company denied any favouritism or gain from the settlement.
"During the period under consideration by the French Tax Authorities - 2008-2012 i.e. nearly 10 years ago, Flag France had an operating loss of Rs 20 crore (Euro 2.7 million). French tax authorities had raised a tax demand of over Rs 1100 crore for the same period," the official said.
"As per the French tax settlement process as per law, a mutual settlement agreement was signed to pay Rs 56 crore as a final settlement," he said.
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Min. Priyank Kharge to expresses concern over implementation of VB-G Ram G
Bengaluru: Rural Development and Panchayati Raj Minister Priyank Kharge has expressed concern over the uncertainty surrounding the implementation of the proposed VB-G Ram G scheme, stating that the MNREGA programme, which has been a lifeline for rural India for nearly two decades, appears to be facing an uncertain future.
Speaking to media, Kharge said that as March 31 draws to a close, there is no clarity on the rollout of the new scheme from April 1. He pointed out that the central government has not yet issued the necessary guidelines for implementing the scheme for rural workers and villages.
He criticised the Centre for its lack of preparedness, stating that there is no clarity on fund allocation, no final parameters for classifying gram panchayats, and key processes such as social audits have not been defined.
Kharge said the situation comes at a critical time, as summer marks a peak period for rural employment demand, when many people depend heavily on wage employment for their livelihood.
He added that reports have emerged of delays in approvals and families not receiving work despite demand.
He further alleged that the Centre’s move to shift from a statutory employment guarantee to a rule-based allocation system is already showing negative consequences.
Kharge also raised concerns over provisions such as a mandatory 60-day halt during agricultural seasons, which he said would further limit employment opportunities for rural workers.
The BJP-led central government had claimed that the new scheme would transform rural India, but in reality it is turning out to be detrimental to people’s livelihoods, he said.
“The crisis in rural India due to the stalling of MNREGA is beginning to unfold. Given the Centre’s past record in handling such situations, there is growing concern over the impact on rural livelihoods,” Kharge said.
