How does Anil Ambani benefit from Rafel fighter jet deal?

Anil Ambani's involvement in the Rafale fighter jet deal centers around the offset clause, which requires Dassault Aviation, the manufacturer of the Rafale jets, to invest about 50% of the deal's value—approximately ₹30,000 crore—in India. This investment is part of the offset obligations tied to the purchase of 36 Rafale jets for ₹59,000 crore.

Key Points:

1. Joint Venture with Dassault: Anil Ambani's company, Reliance Aerostructure, formed a joint venture with Dassault Aviation called Dassault Reliance Aerospace (DRAL). This joint venture was expected to play a significant role in fulfilling Dassault's offset obligations in India12.

2. Offset Obligations: The offset clause mandates that Dassault invest a substantial portion of the deal's value in India. Reliance Defence, part of Anil Ambani's group, was chosen as one of the offset partners, potentially benefiting from a significant portion of this investment13.

3. Allegations of Favoritism: Critics, including Rahul Gandhi, have alleged that the deal was altered to benefit Anil Ambani, suggesting that Prime Minister Narendra Modi influenced the selection of Reliance Defence as an offset partner despite the company's lack of experience in defense manufacturing134.

4. Denials and Justifications: Both Dassault and Anil Ambani have denied these allegations. Dassault has stated that it chose Reliance Defence due to its registration with the Ministry of Corporate Affairs and its possession of land in Nagpur, which provided access to an airport2.

Despite these denials, the controversy surrounding the deal remains, with ongoing political debates and legal challenges in India. The Supreme Court initially cleared the deal of corruption allegations but faced petitions for a review3.