Le Monde: France waived 144 mn euro tax dues of Anil Ambani firm

Anil Ambani

In fresh revelations in the Rafale deal, French newspaper Le Monde reported that Anil Ambani's French-registered telecom company was given tax waivers worth €143.7 million by local authorities, shortly after the announcement by Prime Minister Narendra Modi to buy 36 Rafale jets in fly away condition.

According to the newspaper, Ambani's telecom company "Reliance Atlantic Flag France" was investigated by French tax authorities and found liable to pay €60 million between 2007 and 2010.

In an attempt to reach a settlement, Reliance had offered to pay €7.6 million, which was rejected by the authorities, and upon further investigation for the period 2010 to 2012, an additional tax of €91 million was levied.

During a visit to Paris in April 2015, PM Modi made a surprise announcement for direct purchase of 36 Rafale jets in fly away condition in April 2014 citing "critical operational necessity" of IAF.

No favouritism, says Reliance

Responding to the Le Monde story, Reliance Communications in a statement said the case pertains to 2008 and denied any "favouritism or gain" from settlement. According to the statement, Reliance FLAG Atlantic France SAS is a subsidiary of Reliance Communications, India and owns a terrestrial cable network and other telecom infrastructure in France. The tax demands were completely "unsustainable and illegal" the statement said, and claimed that tax disputes were settled "as per legal framework in France available to all companies operating in France."

Not even connected: MoD

A statement released by the Ministry of Defence said the tax concession is not related to the Rafale deal and drawing connections between the two "is a mischievous attempt to disinform."

"Neither the period of the tax concession nor the subject matter of the concession relate even remotely to the Rafale deal concluded during the tenure of the present Government. Any connections drawn between the tax issue and the Rafale deal is totally inaccurate, tendentious and is a mischievous attempt to disinform," it said.

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