PM Narendra Modi announced 36 Rafale Jets will be procured from France on April 10th, 2015. The deal was closed on September 23rd, 2016. Congress alleges NDA Government is procuring each aircraft for Rs 1,670 crore as against Rs 526 crore finalised by the UPA Government. Main Opposition complains that offering the defence contract to Anil Ambani-owned Reliance Defence is part of the conspiracy.
Le Monde reported that French Tax Authorities found Reliance Flag is liable to pay 30 million euros in taxes from 2007 to 2010. In the fresh probe from 2010 to 2012, Reliance Flag was asked to pay additional 91 million euros in taxes. However, Tax Authorities received 7.7 million euros from Reliance Flag Atlantic France for settlement as against the demanded 151 million euros. Reliance Flag have cable network and other telecom infrastructure in France.
However, Reliance Communications condemned the allegations saying tax dispute was resolved as per the legal framework. The Company told a final settlement of Rs 56 crore was made to France Tax Authorities.