Ruling on fighter jets works in Modi’s favour

– India’s Supreme Court yesterday dismissed calls for an investigation into a controversial French fighter jet deal, in a move seen as a boost for Prime Minister Narendra Modi.

The 2016 multibillion-dollar deal between the Indian government and French aircraft manufacturer Dassault has become mired in corruption claims, with critics accusing Modi of using the agreement to favour a key backer.

Several petitions by activists and politicians had demanded the court order a probe, amid claims the prime minister violated defence procurement rules. But the country’s top court refused to intervene, saying it had “no doubt in the process” of procurement.

Dassault initially won the contract to supply 126 fighter jets in 2012, but negotiations floundered. It promised to deliver 18 fly-away jets, with the remaining aircraft being manufactured in India in collaboration with the state-run Hindustan Aeronautics Limited.

However, during a visit to France in 2015, Modi scrapped the deal, signed under the previous Congress government, opting for 36 fly-away planes instead for a sum of $9.4 billion (R135 billion).

They signed a formal agreement in 2016, with the first aircraft to be delivered in 2019.

The new deal saw Dassault partner with India’s Reliance business conglomerate, headed by billionaire Anil Ambani.

Several reports say Dassault was forced to choose Reliance by Modi despite having almost no aviation experience.

Under Indian defence procurement rules, foreign companies winning contracts must “offset” or reinvest half the total value in joint ventures or purchases with Indian firms. – AFP