Crux of scandal

The French defence firm Dassault picked Reliance Group, run by Indian billionaire Anil Ambani, as its main local partner in the multi-billion-dollar 2016 deal to buy 36 Rafale jets, estimated to be worth $8.7 billion, instead of the state-run Hindustan Aeronautics Limited. This has long been controversial because unlike HAL, Reliance had no previous experience in the aeronautics sector. Under India’s offset policy, foreign defence entities are mandated to spend at least 30 per cent of the total contract value in India through procurement of components or setting up of research and development facilities.